The correction in the Indian equity markets in April has led to a fall in daily assets under management (AUM) for a few equities fund categories. The data from Association of Mutual Funds in India (Amfi) shows that in April large-cap funds, flexi-cap funds and sectoral funds saw a decline in daily AUM compared to March.
Daily AUM of the large-cap category stood at Rs 2.23 trillion in April compared to Rs 2.26 trillion in March, while AUM of flexi-cap funds fell to Rs 2.05 trillion in April as against Rs 2.07 trillion in March.
Indian equity markets have been very volatile largely due to the sustained selling from the foreign portfolio investors (FPIs). In the month of April, S&P BSE Sensex index was down by 2.57 per cent. However, S&P BSE Mid-cap index and S&P BSE Small-cap index were marginally up by 1.29 per cent and 1.40 per cent, respectively.
Even the daily AUM for small and mid-cap funds improved in April.
In April, daily AUM of mid-cap funds was at Rs 1.61 trillion compared to Rs 1.58 trillion in March. Small-cap funds saw their daily AUM rise to Rs 1.08 trillion in April from Rs 1.05 trillion in March 2022.
In the past few months, flows into equity funds have remained strong as investors have continued to invest despite sharp volatility in the markets. Equity mutual funds saw net inflows of Rs 1.64 trillion in 2021-22 (FY22) compared to net outflows of Rs 25,967 crore seen in the preceding financial year, buoyed by record inflows of Rs 28,463 crore in March.
In FY22, equity funds logged inflows in excess of Rs 20,000 crore in three months. In July and December, they saw net inflows of Rs 22,583 crore and Rs 25,082 crore, respectively.
The increase in net equity inflows were helped by surging equity markets coupled with investors’ steady participation through systematic investment plans (SIPs) and the success of new fund offers (NFOs).
In FY22, inflows through the SIP route stood at Rs 1.24 trillion compared to Rs 96,080 crore in FY21. In March, inflows through SIP recorded a new high of Rs 12,328 crore.