Equity mutual funds record a 44% fall in net inflows for April 2022

Markets have been consistently falling in April 2022 and its impact can be very well seen in the net inflows. Read on to find out more. 

In April 2022, S&P BSE Sensex Total Returns Index (TRI) tanked almost 2.53%, however, the broader market outperformed with S&P BSE Mid-Cap TRI and S&P BSE Small-Cap TRI ending the month with gains of 1.34% and 1.43%, respectively. Having said that, the underperformance of the market barometer has led to some impact on the inflows in equity mutual funds.

For April 2022, the net inflows of equity mutual funds were at Rs 15,890.38 crore, while in the preceding month it was around 28,463.49. This showcases the fall was around 44% Month on Month (MoM). This fall was majorly contributed by Equity Linked Saving Schemes (ELSS) and Multi-Cap Funds with both staring at a more than 80% fall in net inflows. However, the heartening part is that there were no negative net inflows and even the growth of Asset Under Management (AUM) of equity funds was not negative.

The said month was a blockbuster for hybrid funds as it received a positive net inflow of Rs 7,240.19 crore, whereas in the preceding month it witnessed a net outflow of Rs 3,603.61 crore. However, it was debt mutual funds that saw a positive net inflow as well as a rise in the AUM.

Speaking about Systematic Investment Plan (SIP) contribution, then the month of April 2022 witnessed a 3.8% fall in SIP contribution as compared to March 2022. However, on the Year on Year (YoY) basis, it surged around 38%. Therefore, we can say that though investors are quite cautious about putting new money into equity funds, but there is no panic selling happening.