Equity MFs inflow dips 5% in April; SIP contributions fall to ₹31,115 cr

Equity-oriented mutual fund schemes garnered a net inflow of ₹38,440 crore in April, marking a 5 per cent decline from the preceding month, amid geopolitical tensions in the Middle East, fluctuating crude oil prices, and concerns about global growth.

Moreover, monthly contributions through SIPs (Systematic Investment Plans) declined to ₹31,115 crore last month from ₹32,087 crore in March,according to data released by industry body Amfi on Monday.

Overall, the industry recorded a net infusion of ₹3.22 lakh crore in April after witnessing an outflow of ₹2.4 lakh crore in March. This was contributed by a huge inflow of ₹2.5 lakh crore in the debt funds.

 

The inflow has lifted the industry's assets under management by 11 per cent to ₹81.92 lakh crore at the end of April, up from ₹73.73 lakh crore at the end of March. This was driven by strong positive flows across segments and market to market gains witnessed during the month, said Venkat Chalasani, Chief Executive at Amfi.

"The overall trend indicates sustained resilience in domestic investor sentiment despite the prevailing uncertain global environment and intermittent volatility in equity markets," saidHimanshu Srivastava, Principal, Manager Research, Morningstar Investment Research India.

According to the data, equity inflows dropped to ₹38,440 crore in April fromRs40,450 crore in March. However, it was higher than ₹25,978 crore inflow seen in February.

This also marks the 62nd consecutive month of positive flows.

While most categories recorded positive flows, Dividend Yield and Equity Linked Savings Scheme (ELSS) funds saw marginal outflows due to some profit booking or portfolio rebalancing.

Within the equity segment, Flexi Cap funds led the category with net inflows of Rs10,148crore. Another key highlight during the month was the continued strength in inflows into the mid-cap and small-cap categories. Mid-cap funds received net inflows of ₹6,551 crore, while small-cap funds attracted ₹6,885 crore, both witnessing an increase over March. Besides, large-cap funds registered inflows of ₹2,525 crore.

Debt-oriented schemes saw a sharp rebound in April, recording net inflows of ₹2.5 lakh crore, driven primarily by strong inflows into liquid, overnight, and other short-duration funds. This came following a massive outflow of ₹2.95 lakh crore in March.

"This reflects the typical post year-end redeployment of liquidity after March outflows,"Umesh Sharma, CIO-Debt at The Wealth Company, said.

However, long-duration and gilt categories continued to see outflows, indicating persistent caution on interest rate risk, while corporate bond funds recovered with moderate inflows, he added.

Liquid funds led the recovery with inflows of ₹165,105 crore, followed by overnight funds, which attracted 31,420 crore. Money market funds also witnessed inflows of ₹20,643 crore.

Meanwhile, gold exchange-traded funds saw inflows of Rs3,040 crore during the month, which was higher than the Rs2,266 crore in March.