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Inflows into equity MFs touch 12-month high despite brutal selloff in March

SIP collections hit new records with inflows of over ₹1 lakh cr in a fiscal for first time.

, ET Bureau|
Last Updated: Apr 10, 2020, 10.23 AM IST
Aggregate inflows into equity mutual fund schemes climbed to Rs 11,723 crore during the month, higher than February’s Rs 10,796 crore.
Mumbai: “Be greedy when others are fearful” –Warren Buffett advised investors who want to make money consistently in the stock markets. The average Indian savers appear to have heeded the Oracle of Omaha’s advice despite unprecedented carnage on D-Street, remaining steadfast on their long-term goal of building wealth, SIP by SIP.

Collections through monthly systematic investment plans (SIP) continued their upward trend and touched an all-time high of Rs 8,641 crore, staying above the Rs 8,000 crore mark for the 16th consecutive month. As per data from the Association of Mutual Funds in India (AMFI), for the first time, SIP collections crossed the Rs 1 lakh crore mark in a financial year to touch Rs 1,00,040 crore. And all this through a manic March, in which Nifty crashed nearly a quarter.

“Investors are doing SIPs for the long term to meet their financial goals. Over the years, they have evolved and have faith in the markets,” said DP Singh, executive director, SBI Mutual Fund.


Aggregate inflows into equity mutual fund schemes climbed to Rs 11,723 crore during the month, higher than February’s Rs 10,796 crore. These inflows are the highest in the past 12 months.

“The fall in the frontline indices was used as an opportunity by HNIs, family offices and some institutions to allocate money through large cap, multicap and index funds,” said A Balasubramanian, chief executive officer, Aditya Birla SL Mutual Fund.

However, the average industry assets for March fell by Rs 3.5 lakh crore to Rs 24.71 lakh crore, but the withdrawals were not from growth assets.

While liquid fund outflows were on account of the year-end and lockdown requirements, investors withdrew from arbitrage funds after spreads between cash and futures turned negative.

“Advance tax payments, payment of dividends in March and buybacks by promoters have led to sharp outflows from debt funds,” said Tarun Birani, CEO, TBNG Capital Advisors.

Largecap funds, multicap funds and focused funds got a large chunk of flows that came into equities. Inflows into large caps rose to Rs 2,060 crore, compared to Rs 1,607 crore in the previous month. Focused funds saw inflows of Rs 1,994 crore compared to Rs 1,446 crore in the previous month.

Smallcap and midcap flows fell to Rs 163 crore and Rs 1,233 crore. Multicap funds that invest in a mix of large, mid and small cap stocks saw flows of Rs 2,268 crore, compared to Rs 1,625 crore in the previous month.

Balanced funds, banking and PSU debt funds, credit risk funds, and equity savings funds, and gilt funds were some categories that saw outflows in March.

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