MUMBAI: The mutual fund industry witnessed a muted start to the new financial year as inflows into equity mutual funds plunged by 68% to Rs 6,480 crore in April as investors decided to wait for more clarity on the direction of the stock market. Inflows in equity mutual funds had surged to Rs 20,534 crore in March.
Showing a similar trend, SIP (systematic investment plan) inflows declined to Rs 13,727.6 crore in April as compared to an inflow of Rs 14,276 crore in March, showed the data released on Thursday by the Association of Mutual Funds in India (Amfi). The marginal fall in SIP inflow is temporary and was caused by a higher number of holidays in April and fewer working days in February, which led to more SIP inflows in March said NS Venkatesh, Chief Executive, Amfi.
“I am confident that we will regain the Rs 14,000 crore number in May,” Venkatesh said in a virtual press conference on Wednesday. “We expect gross monthly inflows through systematic investment plans to reach Rs 17,000-18,000 crore per month by the end of the fiscal year, indicating substantial growth potential,” he said.
The number of SIP accounts reached 6.42 crore as of April 30, compared to 6.36 crore as of March 31. The 42-player mutual fund industry witnessed a sharp turnaround in April as it attracted Rs 1.21 lakh crore, on huge contributions from debt-oriented schemes, after seeing an outflow of Rs 19,263 crore seen in the previous month.
Debt funds saw a net infusion of Rs 1.06 lakh crore following an outflow of Rs 56,884 crore in the preceding month. The sharp inflow led to the asset under management of the industry rising to Rs 41.62 lakh crore as of April-end from Rs 39.42 lakh crore at the end of March. In the equities schemes, the small-cap category received Rs 2,182 crore inflows while the midcap category received Rs 1,791 crore inflows in April.
Mutual fund performance
Rs 6,480 crore: Inflows in equity mutual funds in April
Rs 20,534 crore: Inflows in equity mutual funds in March
Rs 14,276 cr Fund collection through SIPs in March
Rs 13,727 crore: Fund collection through SIPs in April
Rs 41.62 lakh crore: AuM of mutual funds industry as of April-end
Rs 39.42 lakh crore: AuM of mutual funds industry as of March-end