Mutual fund investors redeem Rs 10,000 cr from SIP accounts in Nov

Net SIP investments at Rs 3,260 cr in Nov, the lowest since Oct 2021

Mutual fund investors redeemed more than Rs 10,000 crore from systematic investment plan (SIP) accounts in November to cash in on the market rally. Redemptions were the highest since at least April 2021, when the industry started disclosing the net SIP inflow data.

"Investors felt that the all-time-high levels in November was a good point to exit with gains. Distributors ideally try to discourage investors from exiting on account of market levels, but not all investors listen," said Sadashiv Phene, a Mumbai-based mutual fund distributor.

Fresh SIP investments remained undisturbed. In November, investors poured in a record sum of Rs 13,300 crore through the systematic route.

As a result, the net SIP inflows came in at a paltry Rs 3,260 crore, the lowest since October 2021, data from the Association of Mutual Funds in India showed.
 

In November, heightened redemptions brought down net investments in equity funds to Rs 2,260 crore. Net inflows were dragged down by a surge in redemptions. Investors pulled out Rs 26,030 crore from active equity schemes, 60 per cent more than October and the highest since September 2021.

Net inflows in the top two equity schemes—flexicap and largecap—turned negative in November. While investors pulled out Rs 1,040 crore net from largecap schemes, flexicap funds had an outflow of Rs 860 crore.