Equity mutual funds staged a strong comeback in November after three months of easing contributions, with net inflows rising 21 per cent to ₹ 29,911 crore, supported by stable macroeconomy and steady corporate earnings.
This improvement in inflows also lifted the broader industry’s asset base, with total assets under management rising to ₹80.80 lakh crore in November from ₹79.87 lakh crore in October, according to data released by industry body Amfi on Thursday.
“Equity-oriented schemes continued to drive growth, supported by sustained inflows. Hybrid and passive funds also saw healthy traction, with multi-asset and arbitrage funds together accounting for over 70 per cent of hybrid category flows,” Venkat N Chalasani, CEO of Amfi, said.
However, retail participation via systematic investment plans (SIPs) showed marginal softness, with SIP inflows easing to ₹29,445 crore from ₹29,631 crore in October.
Despite this dip, overall equity inflows strengthened, rising to ₹29,911 crore in November from ₹24,690 crore in the previous month, the data showed.
Flows, however, remain about 17 per cent lower year-on-year and well below ₹30,421 crore registered in September, ₹33,430 crore in August and ₹42,702 crore in July.
Market experts caution that while the month-on-month improvement signals firmer investor sentiment, sustaining the momentum will be important.
The growth reflected sustained “investor confidence amid a supportive macro environment, resilient corporate earnings and improving clarity around the global interest-rate trajectory”, Himanshu Srivastava, principal research at Morningstar Investment Research India, said.
“The overall trend for November reflects a stabilising risk appetite and stronger, broad-based net inflows across core equity categories,” said Akhil Chaturvedi, ED and CBO, Motilal Oswal Asset Management Company.
Flexi-cap funds continued to dominate with ₹8,135 crore in inflows, though slightly lower than October’s ₹8,929 crore.
Large & mid-cap funds followed at ₹4,503 crore, while dividend yield and ELSS funds were the only categories to record net outflows of ₹278 crore and ₹570 crore, respectively.