How Mutual Fund flows panned out in November 2022?

How Mutual Fund flows panned out in November 2022
How Mutual Fund flows panned out in November 2022

by 5paisa Research Team Last Updated: Dec 12, 2022 - 05:22 pm 7.1k Views

On Friday 09th December 2022, AMFI reported detailed data on gross and net flows into various mutual fund categories. There were broadly some trends that have been seen in the last 2 years and that has only got underlined in the month of November 2022. For instance, there continues to be a steady growth in the number of mutual fund investors as measured by the number of folios, which shows the retail spread. Secondly, NFOs are back in action with flows of Rs. 7,191 crore in November. However, most of the NFO flows are coming from Fixed Maturity Plans, sector funds and index funds. SIPs have come of age in a big way as measured by the AMST. SIP net flows in November were at a record Rs. 13,306 crore.

What we read from the AMFI mutual fund flow data for November 2022?

Here is what we gathered from the mutual fund flow data for November 2022.

  1. Even through the smaller stocks may still be short of their previous highs, the Nifty and the Sensex have already touched new highs. That has resulted in assets under management (AUM) of Indian mutual funds traversing beyond Rs. 40,00,000 crore. This AUM was spread across close to 14 crore folios as of the close of November 2022.

  2. NFO flows were only permitted after a gap from July 2022 onwards. The new fund offerings have picked up sharply to Rs. 7,191 crore, of which Rs. 3,703 crore was accounted for by fixed maturity plans (FMPs) as investors locked into high bond yields for a period of over 3 years. Other than FMPs, the NFO flows were concentrated in sector funds and index funds (since both don’t have any AMC level limit on the number of schemes).

  3. Over the last 1 year, the AUM dominance has been moving out of debt funds and into equity funds. That is evident from how the AUM of equity funds and debt funds have changed over the last one year. Sample these. Between November 2021 and November 2022, AUM of debt funds fell from Rs. 14.52 trillion to Rs. 12.57 trillion. This was offset by AUM of equity funds expanding from Rs. 12.78 trillion to Rs. 15.58 trillion. Equity fund AUM has gained from positive equity markets and negative bond price movements.

  4. For a long time, Indian mutual fund segment was largely about equity funds and debt funds only. Now a new category of alternate funds are growing in heft and now account for 30% of the total mutual fund AUM. Alternate categories include hybrid funds, passive funds and solutions funds. The big success story has been passive funds, which saw its AUM surge from Rs. 9.42 trillion in November 2021 to Rs. 11.93 trillion in November 2022.

  5. Let us first talk about active flows into equity and debt funds in November 2022. Debt funds saw marginal inflows of Rs. 3,669 crore while equity funds saw smaller inflows of Rs. 2,258 crore on a net basis. Within debt funds, overnight funds, ultra-short term funds and short duration funds saw net buying while liquid funds, money market funds and corporate bond funds saw net selling. Equity funds saw net buying in sectoral funds and small cap funds while large cap funds multi-cap funds and ELSS saw net outflows.

  6. Let us now look at flows in hybrid funds and passive funds in November 2022. Overall hybrid funds saw net outflows of Rs. 6,477 crore while passive funds saw net inflows of Rs. 10,394 crore in November 2022. Within hybrid funds, bulk of the net selling of Rs. 4,075 crore was seen in arbitrage funds followed by balanced advantage funds (BAFs). Within passive funds, index funds and index ETFs on debt and equity indices saw bulk of the inflows while gold funds witnessed outflows.

  7. Let us now move to the all-important systematic investment plans (SIPs), that have become the backbone of mutual fund flows in the last few years. Total net SIP flows stood at Rs. 13,306 crore for November 2022. The annualized SIP flows in the current year are higher by 21% compared to FY22 and substantially higher by 57% than FY21. This has also led to a three-and-half time surge in the average monthly SIP ticket (AMST) since FY17. SIP stoppage ratio is better than FY20 and FY21, but worse than FY22.

  8. Finally, let us take a quick look at the SIP folios and SIP AUM which gives a better idea of the retail spread of SIPs as an investment solution. The SIP folios increased by 1.90% from 593.30 lakhs in October 2022 to 604.57 lakhs in November 2022. While SIP folios crossed 6 crore for the first time, the SIP AUM has gotten closer to Rs7 trillion.

What is the big picture on mutual fund flows. India has 6 crore SIP folios and 14 crore overall folios. While numbers are impressive, it is just scratching the surface of a country with a population of 140 crore. Also, India has about 25 crore insurance policies, over 50 crore bank accounts and over Rs. 110 crore mobile phones. That should be the next target for AMFI and the AMCs to strive for to give Indian mutual fund flows the big leap.


How do you rate this article?


Start Investing in 5 mins*

Rs. 20 Flat Per Order | 0% Brokerage

About the Author

Our research team is composed of some highly qualified research professionals, their expertise range across sectors.


Investment/Trading in securities Market is subject to market risk, past performance is not a guarantee of future performance. The risk of loss in trading and investment in Securities markets including Equites and Derivatives can be substantial.

Open Free Demat Account

Resend OTP
Please Enter OTP
Account belongs to

By proceeding, you agree to the T&C.

Latest News
Sahana Systems IPO GMP (Grey Market Premium)

Sahana Systems IPO worth ₹32.74 crore comprises entirely of a fresh issue of shares by the company. The price band has been fixed in the range of ₹132 to ₹135.

  • Jun 07, 2023
Spectrum Talent Management IPO GMP (Grey Market Premium)

The ₹105.14 crore IPO of Spectrum Talent Management IPO comprises entirely of a combination of a fresh issue of shares and an offer for sale (OFS) by promoters and early shareholders.

  • Jun 07, 2023
IKIO Lighting IPO GMP (Grey Market Premium)

IKIO Lighting IPO worth ₹607 crore comprises of an offer for sale and also of a fresh issue of shares. The offer for sale (OFS) component is by the promoters and early shareholders of the company.

  • Jun 07, 2023

Start Investing Now!

Open Free Demat Account in 5 mins

Enter Valid Mobile Number