Equity Mutual Funds Surge with 21% Inflow Boost in November

Equity mutual funds experienced a significant 21% rise in inflows in November, reaching Rs 29,911 crore. This growth, driven by a favorable macro environment and stable corporate earnings, helped the industry reach an asset base of Rs 80.80 lakh crore. However, some softness was noted in retail SIP participation.

In a striking revival, equity mutual funds have marked a robust increase in inflows, climbing 21% to Rs 29,911 crore in November. This surge, buoyed by a supportive macroeconomic backdrop and resilient corporate earnings, has not only uplifted the equity space but also increased the overall industry asset management to Rs 80.80 lakh crore from Rs 79.87 lakh crore in October, as per Amfi's latest data.

Equity-oriented schemes remain a strong growth driver, maintaining steady inflows. Hybrid and passive funds also showed promising trends, capturing over 70% of hybrid category inflows, according to Venkat N Chalasani, CEO of Amfi. Meanwhile, retail participation via systematic investment plans (SIPs) saw a slight dip, but the upward trajectory of overall equity inflows continued from October to November.

Despite these gains, the year-on-year flows show a 17% decline. Experts emphasize the necessity of sustaining this momentum to cement investor confidence. The sub-categories within equities reported positive outcomes, with Flexi-cap funds leading, despite a minor dip compared to October. The debt mutual fund sector, however, faced significant withdrawals led by institutional investor behavior and liquidity tightening.

(With inputs from agencies.)