In April 2024, the mutual Fund industry saw investors again focusing on small-cap funds and mid-cap funds to make against. Notably multi-cap funds saw significant inflows worth Rs 2,723 crore, ranking second in terms of inflows in the equity category after thematic funds. According to the monthly data released by the Association of Mutual Funds in India (Amfi) on May 9, 2024, total inflows into open-ended equity mutual funds dipped from Rs 22,633 crore in March to Rs 18,917 crore in April. For proper perspective, March inflow was already much lower than February's Rs 26,865 crore of inflows.
Despite this decline, the net assets under management (AUM) of the mutual fund industry reached Rs 57.25 lakh crore by the end of April, up from March's Rs 53.40 lakh crore, AMFI data said. SIP contribution stood at an all-time high of Rs 20,371 crore in April 2024 as against Rs 19,270 crore in March 2024.
There were concerns shared by stakeholders that inflows would dip because of the KYC-related issues, in which investors are not able to get their KYC validated. Venkat Chalasani, Chief Executive, AMFI said, "With regards to the KYC norms applicable w.e.f April 2024, the mutual fund industry is addressing concerns for a smooth process. Together with AMCs, distributors and other stakeholders, we are committed to facilitating a seamless KYC validation process for all, thereby ensuring the integrity and accessibility of mutual fund investments across the board." The latest data says 93 per cent of MF accounts have KYC Validated or KYC Registered status and only 3 per cent of accounts have 'KYC Hold' status.
Chalasani said, "The Mutual Fund Industry surged to new levels, with Net AUM reaching Rs 57.26 lakh crores and SIP accounts touching 8.70 crores. A historic SIP contribution of Rs 20,371.47 crores taking SIP AUM to Rs. 11.26 lakh crores with 63.65 lakh new SIP registrations showcases investor confidence."
Small & Mid Cap Funds Regain Favour
The total inflow in equity-oriented funds during April was Rs 18,917 crore. Despite the dip in equity inflows, small-cap and mid-cap funds regained favour amongst investors. Large-cap funds that saw substantial inflows in March around Rs 2,128 crore, saw their inflows drop to Rs 357 crore in April.
Sebi's warnings about froth in mid-cap and small-cap space had led to outflows and a dip in inflows in March. However the trend has reversed and small-cap funds experienced an inflow of Rs 2,208 crore, while investments in mid-cap funds were Rs 1,793 crore. Among equity funds, sectoral or thematic funds holding the largest number of funds, continues to be the category with the highest inflows at Rs 5,166 crore, followed by multi-cap funds at Rs 2,723 crore. Large and midcap funds saw inflows worth Rs 2,638.91 crore.
The inflows into hybrid fund categories picked up in April with inflows showing Rs 19,862 core up from Rs 5,583.62 crore in March.
On the debt front, mutual fund schemes saw substantial inflows worth Rs 1,89,890 crore out of which Rs 1,02,751 crore came from liquid funds. A total of 9 open-ended schemes were launched in April raising a total of Rs 1,532 crores.
