Despite the fact that the domestic equity markets were highly volatile throughout March, equity investors remained resilient, and even invested more money into equities.
According to data released by the Association of Mutual Funds in India (Amfi), equity-oriented schemes saw a net inflow of Rs 28,463.49 crore.
This robust inflow into equity-oriented mutual funds was 43.8 per cent higher as compared to the flow in February. New fund offers (NFOs) also contributed Rs 11,911 crore to this. But despite the increase in inflow into equity-oriented mutual funds, there was a sharp outflow from debt-oriented schemes. This was because March happens to be the quarter-end month as also the time when the financial year draws to a close, because of which many corporate groups, banks and other institutions usually withdraw their money invested in debt funds.
“The deteriorating geopolitical situation with the Russia-Ukraine war, elevated hawkish US Fed stance, or even the rising inflation owing to spurt in fuel prices has not deterred continued investor confidence in the India growth story. Flows into retail schemes in CY 2022 continue to show month-on-month increase, led by rising SIP contribution, which for March 2022 are at an all-time high at Rs. 12,328 crore, and with economy opening up due to tapering Covid prevalence in the country,” says Mr NS Venkatesh, chief executive, Amfi.
What Is The Trend Showing?
Despite the volatility induced by the ongoing war, rising commodity prices, as well as the inflation rate breaching the RBI’s comfort level, investors continued to invest in equity schemes.
The number of folios as on 31 March 2022 was at 129,504,652, up by 2.67 per cent as compared to February’s folio numbers of 126,129,549.
The monthly SIP collection figure stood at Rs 12,327.91 crore, and it grew by 7.22 per cent when compared against February’s figure of Rs 11,437.7 crore. This figure highlights the fact that retail investors continued to have faith despite the volatile market conditions, and SIP remained a favoured mode of investment for them.
The assets under management (AUM) for SIP at the end of March 2022 was Rs 5,76,358.30 crore, an increase of 4.81 per cent when compared to February’s figure of Rs 5,49,888.76 crore.
The number of SIP accounts was at an all-time high of 52,772,521. This figure was 51,728,726, in February. So, essentially, the number of SIP accounts was up by 2.01 per cent.
