Are equity mutual funds getting a lot of attention?

As it is much evident from the monthly data released by AMFI, that equity mutual funds inflow more than doubled in December 2021. Read on to find out more.  

Markets (Nifty 50) last touched 18,000 levels on November 15, 2021, and since then we have seen markets making a lower top and lower bottom. However, the markets are currently resisting at 18,000 levels and breaching this level will further decide the direction of the market. Having said that, equity mutual funds are getting a lot of attraction as evident from the inflows data published by the Association of Mutual Funds in India (AMFI).  

According to the monthly data from AMFI, the inflows of equity mutual funds doubled to Rs 25,077 crore in December 2021 from the inflows of Rs 11,615 crore as seen in the preceding month. The net inflows of equity mutual funds were negative Rs 10,147 crore in the same month last year. In fact, in the period from July 2020 to February 2021, the net inflows for equity mutual funds stood negative. Also, the net inflows registered in December 2021 is their highest since April 2018.  

If we deep dive and look at the inflows category-wise, then it was the inflows from the multi-cap category that was the highest among others. The inflows from multi-caps surged from Rs 348 crores in November 2021 to whooping Rs 10,516 crore in December 2021. This rise can be very well attributed to the newly launched funds that mobilised funds around Rs 9,509 crore.  

Hence, the ongoing addition to the net inflows by the equity mutual fund (excluding funds mobilised by the New Fund Offers) was Rs 12,631 crore as compared with Rs 11,137 crore in November 2021. We can therefore conclude that investors were more attracted towards NFOs rather than available funds.