Net equity MF inflows in November plunge to ₹2,224 crore, the lowest since April 2021

Compared with October, this marked a 76% decline. Net inflows into equity MF schemes had fallen 34% in October. The data includes both open and close-ended schemes.

Notwithstanding the decline, this was the 21st consecutive month of positive net inflows into equity MF schemes since March 2021. With the markets on the rise, investors took to profit-booking over the past month.

According to Melvyn Santarita, analyst-manager, research, Morningstar India, the stock market continued its stellar run in November as it witnessed broad-based rallies across large, mid- and small caps. While DIIs (domestic institutional investors) were net sellers of Indian equity, FIIs (foreign institutional investors) returned as buyers in November.

“There have been outflows from retail schemes as people are encashing profits, the reason being increased consumption, owning to the festive season,“ N.S. Venkatesh, chief executive, AMFI, said.

A steady rise in monthly SIP (systematic investment plan) contributions since August extended into November, too. SIP contributions rose 2% to ₹13,306 crore in November over October, when SIP collections had first crossed the ₹13,000 crore-mark.

“SIP contribution remaining above ₹13,000 crore indicates better awareness among retail investors about long-term orientation of equity investments and wealth creation opportunities from India’s growth trajectory,” Akhil Chaturvedi, chief business officer, Motilal Oswal Asset Management Company, said.

Under equity, large cap funds and flexi cap funds had the largest net outflows of ₹ 1,039 crore and ₹863 crore, respectively, in November. Thematic, small-cap and mid-cap funds, however attracted net inflows of around ₹1,380 crore, ₹1,378 crore and ₹1,176 crore, respectively.