Surge in Equity Mutual Fund Inflows Marks Market Rebound

Equity mutual funds saw a substantial increase in inflows, attracting Rs 29,911 crore in November. This marks a 21% rise from October, signaling improved investor sentiment after months of decline. Meanwhile, debt funds faced an outflow, and SIP inflows slightly decreased, reflecting changing investor preferences and market dynamics.

Equity mutual funds experienced a notable surge in inflows during November, drawing Rs 29,911 crore, a 21% increase from October, according to the latest data from industry body Amfi. This positive shift suggests a recovery in investor sentiment following three months of declining inflows.

The boost in equity fund inflows contributed to a rise in the broader industry's asset base, with total Assets Under Management (AUM) climbing to Rs 80.80 lakh crore, up from Rs 79.87 lakh crore in October. However, SIP inflows showed a marginal dip to Rs 29,445 crore from the previous month's Rs 29,631 crore.

While most sub-categories witnessed growth, flexi-cap funds continued as a popular choice, recording the highest inflows at Rs 8,135 crore, albeit a 9% drop from October's figures. In contrast, debt mutual funds faced significant outflows of Rs 25,692 crore, and gold ETFs saw a sharp decline in inflows, reflecting growing investor appetite for equities over traditional safe-haven assets.

(With inputs from agencies.)