Retail investors firing up flows into equity MFs despite market volatility

Low yields from other asset classes and the steady influx of young investors are seen as the factors behind the sustained inflows into MFs.

Often heavy buying by mutual funds (MFs) gets highlighted. But it is the individual investors who provide the firepower to domestic fund managers. Equity MFs have not seen a single month of net outflows in the past year. 

Since March 2021, investors have poured Rs 1.45 trillion into equity-oriented MF schemes. And, there have been months when flows have exceeded $3 billion. Further, inflows through the so-called systematic investment plan (SIP) route have been consistently above Rs 10,000 crore since September 2021. Consequently, in the past 12 months, inflows of Rs 1.2 trillion have come through the SIP route.

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