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The assets under management of India’s mutual fund industry crossed Rs 50 trillion in December due to continued inflows and appreciation in the Indian stock market, according to data released by Association of Mutual Funds of India (AMFI). , an industry trade association for mutual funds.
According to the data, total assets under management (AUM) under open-ended schemes stood at Rs 50.8 trillion in December 2023, compared to Rs 48.78 trillion in November 2023.
The increase in assets in the mutual fund industry is backed by the rise in the stock market. BSE Sensex rose 7.53% in December and NSE Nifty rose 7.93% in the same month.
Meanwhile, inflows through systematic investment plans (SIPs) also increased to Rs 17,610 crore in December against Rs 17,073 crore in the previous month, confirming the confidence of retail investors.
Venkat Chalasani, CEO of AMFI, said, “The mutual fund (MF) industry took almost 50 years to build its first 10 trillion rupees in assets under management, but has grown from 40 trillion rupees to 50 trillion rupees.” The last 10 trillion rupees to be reached “in just over a year. The entire Indian mutual fund industry, including AMCs and regulators, with the support of MF distributors, is working intensively to reach investors across India. I have made great efforts.”
strong stock flow
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Net inflows into open-end equity mutual funds in December increased by 9% to Rs 16,997 crore as against Rs 15,536 crore in November.
Net investments in small-cap funds during the month were Rs 3,858 crore, while inflows into mid-cap funds fell by 48% in December. Large-cap funds recorded a net outflow of Rs 281 crore.
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In November, net inflows into small cap funds amounted to Rs 3,699 million, net investments in mid cap funds amounted to Rs 2,666 million and net investments in large cap funds amounted to Rs 370 million. Ta.
“Compared to the last four months (August-November), there has been a significant decline in flows in the mid-cap category. This may be partially due to investors looking to protect their profits.”The small-cap category also saw significant redemptions during the month, but purchase volumes were significantly higher.”Morningstar Investment Research・Melvin Santarita, India analyst and research manager, said:
For the entire calendar year, net inflows into small-cap funds stood at Rs 41,035 crore and net investments in mid-cap funds stood at Rs 22,913 crore. On the other hand, large-cap funds recorded net sales of Rs 2,968 crore.
Equity-oriented mutual funds had recorded a 22% decline in inflows in November.
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large amount of debt outflow
Regarding debt funds, there was a net outflow of Rs 75,560 crore from debt funds last month as against a net outflow of Rs 4,770 crore in November.
From debt-oriented schemes, liquid funds had the highest net outflow at Rs 39,675 billion, followed by low duration funds at Rs 9,432 billion and money market funds at Rs 8,384 billion. Ultra-short-term funds and floater funds also had net outflows of Rs 6,000 crore each, followed by Rs 4,865 crore from overnight funds.
“Total inflows into the mutual fund industry declined by Rs 40,685 crore on the back of quarter-end prepayment of taxes, regular redemptions from bond funds and higher valuations in the equity sector,” FYERS, research arm Vice President Gopal Kavalireddy said.
Hybrid funds in demand
The hybrid scheme had a net flow of Rs 15,090 crore, mainly due to inflows of Rs 10,645 crore into arbitrage funds.
“With Indian markets at an all-time high, many investors have started reallocating their funds between equity and debt. Inflows into multi-asset allocation funds are 2.42 billion,” he said. 1,369 million rupees, resulting in inflows to the Balanced Advantage Fund of 1,369 million rupees.” Kabali Reddy.
Net inflows into equity funds during the calendar year were Rs 1,610 billion, of which 39 per cent or Rs 63,949 billion went to small and mid-cap mutual funds. The next best category was sectoral or thematic funds, which received Rs 20 million. The annual figure is 3,084.1 billion yen. Large-cap stocks and concentrated funds were the only two sectors where inflows declined by about 1.7% each.
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