BIZ~ COMM
Boosted by the benchmark indices hitting all-time highs in November, the mutual fund industry’s AUM reached Rs 49.04 lakh crore. While basket selling in debt category schemes resulted in net outflows of Rs 4707 crore, the equity segment continued its buoyant trend for the 33rd consecutive month of positive netflows at Rs 15,536 crore for November.
Mid and small cap equity funds continue to receive bulk of the inflows, accounting for 41% out of the total equity inflows. Small cap funds saw the highest inflows among equity funds at Rs 3699 crore, trailed by mid cap funds at Rs 2666 crore and sector/thematic funds at Rs 1965 crore. Fund flows into large caps continue to be tepid, but investors continue to opt for index funds, pouring in Rs 1353 crore for the month.
With indices moving from strength to strength, boosted by high economic activity, steady GST collections, and faith in the reforms and policies undertaken by the government, investors continued their allocations into various sectors of the economy.
SIP inflows hit an all-time high of Rs 17,073 crore, bettering the Rs 16,928 crore of flows in October. Equity AUM hit an all time high, on the back of excellent performances from Nifty 50 (5.52 per cent), Nifty mid cap 100 (10.37 per cent) and Nifty small cap 100 (12.03 per cent). With gold and other asset classes also delivering good returns, the multi-asset allocation fund category witnessed Rs 2589 crore of inflows.
“With elections around the corner and expectation of better FII flows into the Indian stock markets, equities could continue to rally, with minor corrections from time to time. Large caps, on the back of relatively affordable valuations, could find investor interest, while pockets of mid and small caps continue their out performance.
