Inflows to equity MFs drop 14% in Nov; large cap funds de-grow by 26%: AMFI data

Despite volatility in the equity market, the mutual fund industry's net assets under management (AUM) reached a fresh all-time high of ₹68.08 lakh crore in November, supported by sustained fund inflows into growth and equity-oriented schemes. The AUM for the month of October was ₹67.25 lakh crore, as per the latest data released by the Association of Mutual Funds in India (AMFI) on Tuesday.

However, inflows into equity mutual funds saw a steep decline of 14% in November, dropping to ₹35,943.49 crore from ₹41,886.69 crore in the previous month. This was attributed to up to 6% correction in the domestic equity markets in October, amid fund outflows by foreign institutional investors (FIIs). The sentiment was further impacted by slowdown in new fund offerings (NFO) during the month under review. A total of 18 schemes were launched in November, all in the category of open-ended scheme, raising a total of ₹ 4,052 crore.  

“Defying a tumultuous month in the equity market, the mutual fund industry's assets reached a new pinnacle of ₹68.08 lakh crore, driven primarily by robust inflows into growth-/equity-oriented schemes,” says Venkat Chalasani, Chief Executive, AMFI.

Among individual fund categories, large cap funds de-grew by 26% to ₹2,548 crore, while mid and small cap funds registered month-on-month (MoM) net inflows of 4.3% to ₹4,883 crore and 9% to ₹4,112 crore, respectively. Thematic funds, accounting for 21% of the net inflows in equity oriented schemes, recorded de growth of 37% MoM.

“The equity category has witnessed a decline in inflows, driven by a slowdown in NFO launches and market fluctuations. However, the small-cap segment continues to draw investor interest, supported by sustained SIP contributions, fresh inflows, and positive mark-to-market performance. SIPs, in particular, remain a testament to investors' conviction,” says Deepak Ramaraju, Senior Fund Manager, Shriram AMC.

Meanwhile, investment via systematic investment plans (SIPs) remained above the ₹25,000 crore mark for the second time in row at ₹25,319.66 crore in November. The figure for October and September stood at ₹25,323 crore and ₹24,509 crore, respectively.

The number of SIP accounts stood at highest-ever at 10.23 crore in November 2024 as compared to 10.12 crore in September 2024. However, the number of new SIPs registered during the month stood at 49,46,408, falling from 63,69,919 in October.

“The unwavering monthly SIP inflows remained above ₹25,000 crore in November, showcasing the investors' long-term vision and commitment to their financial goals, despite the short-term market fluctuations. The industry's ability to attract consistent SIP flows is a vote of confidence in its ability to deliver value to investors over the long term," says Chalasani of AMFI.

The data showed that equity linked savings scheme (ELSS) funds saw surge in net inflows by 61% over October 2024. On the other hand, the income and debt oriented schemes recorded huge outflows during November on the back of huge outflows in liquid funds due to tighter liquidity conditions and possible tax payments.