In November 2024, equity mutual fund inflows totaled ₹35,927.3 crore, reflecting a 14.1% decline compared to ₹41,865.4 crore in October, as per data from the Association for Mutual Funds in India (AMFI). This decrease was seen across several fund categories.
Large-cap funds experienced a notable drop of 26.3%, from ₹3,452.3 crore in October to ₹2,547.9 crore in November. In contrast, small-cap funds saw a 9.0% increase, rising from ₹3,772 crore in October to ₹4,112 crore in November. Mid-cap funds also saw a slight growth of 4.3%, with inflows moving from ₹4,683 crore in October to ₹4,883.4 crore in November.
Exchange-Traded Funds (ETFs) faced a significant decline in inflows, plummeting from ₹13,441.8 crore in October to just ₹1,531.2 crore in November. Credit Risk Funds continued to face outflows, with ₹196 crore leaving the segment in November, compared to ₹357.8 crore in October. Similarly, sectoral and thematic funds saw a drop in inflows, decreasing from ₹12,278.8 crore in October to ₹7,658 crore in November.
On a positive note, Equity-linked Savings Schemes (ELSS) experienced a rise in inflows, increasing to ₹618.5 crore in November from ₹362 crore in October. New Fund Offerings (NFOs) also garnered ₹4,052 crore in November, though this was lower than the ₹6,078 crore seen in October. Dividend funds saw a significant drop in inflows, falling from ₹532.8 crore in October to ₹216.6 crore in November.
Despite the declines in most segments, Systematic Investment Plan (SIP) contributions remained consistent at ₹25,320 crore in November, nearly the same as the ₹25,323 crore recorded in October. In terms of total assets, the mutual fund industry saw an increase in Assets Under Management (AUM), which rose to ₹68.08 lakh crore in November from ₹67.25 lakh crore in October.
In the fixed income category, monthly inflows into debt funds dropped by 92%, totaling Rs 12,915.90 crore. Categories like Liquid Fund, Short Duration Fund, and Floater Fund saw net outflows, while inflows into Overnight Fund, Ultra Short Duration Fund, and Money Market Fund also decreased.
The mutual fund industry saw a significant drop in inflows during November, with total investments amounting to Rs 60,295.30 crore. This marks a nearly 75% decrease compared to the previous month, when the industry had received a much higher inflow of Rs 2,39,828.69 crore in October.
Motilal Oswal Bets on Discretionary Goods, Electronics
Motilal Oswal Asset Management expects India’s demand for discretionary goods and the government’s push for manufacturing expansion to fuel a rally in related stocks. CIO Niket Shah is focusing on affordable non-essential goods like jewelry and apparel, as well as the growing electronics sector. Despite high food inflation, he anticipates changes to the income tax code benefiting consumers. His Motilal Oswal Midcap Fund has returned 63% in the last year, outperforming its benchmark. Shah sees potential in electronics manufacturing, boosted by production-linked incentives and possible Chinese joint ventures.
Foreign Investors Buy $3 Billion in Indian Stocks
Foreign investors are making a comeback in the Indian stock market, having purchased nearly $3 billion worth of stocks last week, marking the largest influx since June. This surge in buying comes after a significant $14 billion outflow from the market since October, leaving market analysts confused. Despite challenging macroeconomic conditions and stock valuations that appear unattractive, foreign investors are once again showing interest in Indian equities.
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