India’s equity-linked mutual fund schemes saw a sequential decline in net inflows even as SIP accounts rose to 5 crore, showed the data furnished by the Association of Mutual Funds in India (AMFI) on Wednesday.
Accordingly, the net inflows into equity and equity-linked schemes in India fell by 40 per cent over the previous month to Rs 14,887.7 crore in January.
In December 2021, the net inflows had stood over Rs 25,000 crore.
Besides, in November 2021, it had stood over Rs 11,614 crore, while in October, the inflows had stood over Rs 5,214 crore.
According to the data, the net AUMs for India’s MF industry stood at over Rs 38.01 lakh crore for January 2022.
Furthermore, the data showed that contributions through systematic investment rose to Rs 11,516.62 crore, the highest monthly SIP contribution.
In December, the SIP contributions stood at Rs 11,305.34 crore.
Overall l, the number of SIP accounts stood at a record high in January 2022 of 5.04 crore from 4.90 crore in December 2021.
“Retail Mutual Fund investor confidence in the India Growth story, as reflected through continued all time higher quantum of monthly SIP flows and with economy expected to rise at projected 9.2 per cent, has overshadowed the uncertainties arising out of external factors like Fed Rate hike or FII outflows,” N.S. Venkatesh, Chief Executive, AMFI said.
“Mutual Fund asset class has been established as the preferred investment avenue for long term goals-based savings. Retail Investors adopt rotational investment strategy in the event of rate hike and shift their savings to the hybrid category.”
In addition, Venkatesh pointed out that budget-led Capex spending leading to overall economic growth, rising job creation avenues, healthier corporate earnings growth will spur further higher quantum of savings into Mutual Fund Industry.