Equity MF Inflow Drops 14% in Nov: AMFI Data

New Delhi, Dec 10 (PTI) Equity mutual funds witnessed an inflow of Rs 35,943 crore in November, marking a drop of 14 per cent on a month-on-month basis, amid heightened volatility driven by various macroeconomic factors, geopolitical events and US election results.

Despite this, it marked the 45th consecutive month of net inflows into equity-oriented funds, reflecting the growing popularity of mutual funds among investors, according to data from the Association of Mutual Funds in India (AMFI) released on Tuesday.

"There was heightened volatility due to various macroeconomic factors, geopolitical events & US election results. This resulted in investors opting for wait & watch approach while allocating larger amounts and thus decline in lumpsum flows including flattish SIP numbers for November 2024," Akhil Chaturvedi, CBO, Motilal Oswal AMC, said.

Overall, the mutual fund industry witnessed an inflow of Rs 60,295 crore in the month under review as compared to Rs 2.4 lakh crore in October.

Despite the decline, the industry's net assets under management rose to Rs 68.08 lakh crore last month from Rs 67.25 lakh crore in October.

As per the data, equity-oriented schemes witnessed an inflow of Rs 35,943 crore in November as compared to record inflow of Rs 41,887 crore in October.

Within the equity schemes, sectoral thematic attracted investors with the highest net inflow of Rs 7,658 crore during the month under review. However, flow in the segment was less compared to Rs 12,279 crore in October and Rs 13,255 crore in September.

Inflows into large-cap funds declined from Rs 3,452 crore in October to Rs 2,548 crore in November, while small-cap funds saw an increase from Rs 3,772 crore to Rs 4,112 crore during the same period.

There has been a shift from low-risk categories like large-cap and hybrid funds to higher-risk options like small-cap funds, while NFO activity slowed down last month.