Equity mutual funds saw their first month of net inflows in March after eight months of net outflows. All categories of open ended equity funds, barring multicap funds and value/contra funds, saw net inflows.
Open ended funds saw a net inflow of ₹9,115 crore in the reporting month. After adjusting for net outflows due to maturing of close ended schemes of ₹1,739 crore, the net inflow figure in equity stands at ₹7,376 crore. The flows into equity mutual funds were the highest since March 2020.
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SIP flows came in at ₹9,182 crore, a substantial jump over the ₹7,528 crore recorded in February 2021. However, AMFI CEO NS Venkatesh attributed this jump to holidays at the end of February that shifted flows of around ₹500 crore to March.
Open ended debt mutual funds on the other hand saw net outflows of ₹52,528 crore, driven largely by out flows in short term debt categories like liquid funds, ultra short duration funds, low duration funds, money market funds and short duration funds. Some of these outflows are seasonal in nature, driven by corporate treasuries needing funds for advance tax in March. There were, however, positive flows of ₹956.92 crore in close ended debt funds, mostly driven by launches of fixed maturity plans. Open ended hybrid funds also saw a net inflow of ₹6210.05 crore driven largely by flows into arbitrage and balanced advantage funds.
People have started getting back to normal investment habits post covid, said Swarup Mohanty, CEO, Mirae Asset Mutual Fund. He added that the possible redemptions due to market concerns may also have abated.