SIP investments surpassed Rs. 17,000cr for first time in November
Systematic investment plans (SIPs) in India reached an all-time high of Rs. 17,073 crore in November, according to the Association of Mutual Funds in India (AMFI). However, equity mutual funds saw a decrease in net inflows to Rs. 15,536 crore in November, 22.15% down from Rs. 19,957 crore in October. Speaking to Moneycontrol, Manish Mehta, Sales Head of Kotak Mutual Fund, said, "SIPs continue to attract new investors with increasing awareness of benefits of SIP and mutual funds."
Small-cap and mid-cap funds continue to be popular
Small-cap and mid-cap mutual fund schemes remained popular, with net inflows of Rs. 3,699.24 crore and Rs. 2,665.70 crore, respectively, in November. Since January, small-cap funds have received Rs. 37,178 crore in net inflows, while mid-cap funds saw Rs. 21,520 crore in net investments. In contrast, large-cap funds experienced net outflows of Rs. 2,687 crore since the beginning of the year, with a small net inflow of Rs. 307 crore in November.
Strong market performance contributed to the net inflows
Investments consistently went into equity mutual funds as domestic stock markets remained strong. In November, the Sensex rose 4.87%, and the Nifty50 gained 5.52%. The equity segment also benefited from six new fund launches in November, which collected Rs. 1,907 crore. Mehta said, "Diwali festivities and bank holidays, probably affected equity net flows in November."
Debt funds saw net outflows
Debt mutual funds saw net outflows of Rs. 4,706.70 crore in November, compared to Rs. 42,633.70 crore in net inflows in October. Corporate bond funds experienced net outflows of Rs. 1,578.39 crore and ultra-short duration funds saw net selling of Rs. 1,865.73 crore. Speaking to Moneycontrol, Himanshu Srivastava, Associate Director of Manager Research at Morningstar Investment Research India, attributed the subdued investments in fixed-income funds to changes in tax laws and uncertainty surrounding interest rates.
Gold ETFs saw a decline in net flows
Net flows into Gold ETFs decreased to Rs. 333 crore in November, down from Rs. 841 crore in October. Melvyn Santarita, Analyst at Morningstar Investment Research India Private Limited, as told to Moneycontrol, said that ongoing geopolitical tensions and higher-than-desired US inflation continue to make gold an attractive safe haven and hedge against inflation. However, he added that there could be some profit booking in the near term due to gold prices reaching new highs.
