Equity mutual funds witness record inflows of Rs 28,000 crore in March

Equity mutual funds (MFs) saw record inflows in March supported by strong equity markets and new fund offerings (NFOs). The data from Association of Mutual Funds in India (Amfi) shows that equity funds saw net inflows of Rs 28,463.49 crore, with most flows coming into multicap funds.

In March, S&P BSE Sensex Index was up by 4 per cent, while S&P BSE Midcap Index and S&P BSE Smallcap Index gained 3.22 per cent and 5.83 per cent respectively.

March saw all the 11 categories of equity funds see net inflows, with multicaps witnessing highest inflows of Rs 9,694.56 crore, followed by large and midcap funds at Rs 3,164.67 crore, shows the data from Amfi. Surge in inflows into multicap funds was largely due to the NFO of SBI Multicap fund which garnered Rs 8,170 crore.

Market participants say that despite the volatility in markets, investors have continued to invest through systematic investment plans (SIPs). In the current financial year, equity funds have seen net inflows of Rs 1.64 trillion.

However, debt funds saw net outflows to the tune of Rs 1.14 trillion led by high redemptions from liquid funds, overnight funds and corporate bond funds. Typically, at the end of every quarter there are high redemptions from debt schemes as institutions such as banks and corporates redeem their investments to pay for quarterly advance taxes.

Overall, MF industry saw net outflows of Rs 69,883 crore in March and average assets under management (AAUM) of the industry stood at Rs 37.70 trillion.