In April, equity mutual funds experienced a 16% decline in net inflows, dropping from ₹22,633 crore in March 2024 to ₹18,917 crore. The average assets under management (AAUM) for equity mutual funds for the month stood at ₹24.21 lakh crore.
With the exception of Value/Contra and ELSS, all categories of equity mutual funds observed net inflows. Sectoral/thematic funds led the way with net inflows exceeding ₹5,000 crore, followed by multi-cap, large and mid, and small cap funds with net inflows ranging between ₹2,000 and ₹3,000 crore.
On the other hand, income/debt categories saw net inflows of nearly ₹1.89 lakh crore, increasing the AAUM to ₹14.58 lakh crore. Liquid funds accounted for over half of the net inflows into debt funds, with net inflows reaching ₹1.02 lakh crore. Notably, inflows into liquid funds are common in April as companies often withdraw money in March to prepare for corporate tax payments, subsequently reinvesting the funds the following month if they are no longer needed.
However, outflows were noted in medium-term funds, credit risk funds, and banking and PSU funds, while the overall AAUM for debt mutual funds totaled ₹14.8 lakh crore.
The remaining assets of the ₹57 lakh crore mutual fund industry are comprised of hybrid schemes (₹7.77 lakh crore), index funds and ETFs (₹9.48 lakh crore), and closed-ended schemes among others.
While equity mutual funds experienced a decrease in net inflows, it’s important to highlight the achievement of systematic investment plans (SIP), which reached a new milestone. Monthly SIP data revealed an increase from ₹19,271 crore in March to ₹20,371 crore in April, surpassing ₹20,000 crore for the first time. Notably, SIP contributions have significantly risen since the COVID crash, exceeding ₹20,000 crore from an average of ₹7,000-8,000 crore inflows per month pre-COVID.