Inflows in equity mutual funds continue to grow despite volatile markets!

Despite the markets being on the decline, the equity funds continue to witness growth in inflows. Read on to find out more.  

Stock markets have been facing the heat amid various domestic as well as global factors. In fact, even today, the markets witnessed a huge sell-off. Moreover, the Foreign Institutional Investors (FII) have been net sellers for quite a long now. 

Despite this, we have seen buying from Domestic Institutional Investors (DII) and they have been consistently net buyers. Moreover, the inflows of equity mutual funds during the month of May were Rs 18,529 crore, up 17% from the previous month’s inflow of Rs 15,890.  

On the flipside, debt mutual funds witnessed negative growth. In the month of May, inflows of debt mutual funds were negative Rs 32,722 crore as against Rs 54,757, registering a negative growth of whooping 160%. 

Having said that, it was solution-oriented funds and overseas Fund of Funds (FoF) that registered the highest growth in inflows of 43% and 293%, respectively. But, things are different on the Assets Under Management (AUM) front. 

Even though index funds recorded negative growth in inflows of 6% Month-on-Month (MoM), in terms of AUM, it registered a growth of 5% MOM, while other categories were negative on the AUM growth front. 

According to the data released by the Association of Mutual Funds in India (AMFI), in the month of May 2022, the total Systematic Investment Plan (SIP) accounts stood at 5.48 crore. 

The total amount collected via SIP in the month of May 2022, was Rs 12,286 crore which is an increase of 4% MoM and 39% Year-on-Year (YoY). This clearly shows that investors are quite determined and disciplined when it comes to investing.  

The overall industry AUM in the month of May 2022 was Rs 37.22 lakh crore, down by 2% MoM. Much of this de-growth was contributed by equity and debt mutual funds.