Net investment in equity mutual funds hits 4-month high in November

This shows that the net inflows in such schemes are almost double to twice 5,079.16 crore in October. Monthly SIP contribution hits new high 11,004.94 crore in November. From 10,518.53 crore in the last month.

According to Himanshu Srivastava, Associate Director-Manager Research, Morningstar India, the correction in the equity market in the month of November gave investors a good investment opportunity. He said that most of the investors considered the downside in the market as a good entry point and many preferred to stay in the investment which is evident from the low redemption numbers.

“Despite concerns over the Omicron version of the coronavirus pandemic, the long-term growth outlook remains strong. Furthermore, the perception that the market will continue to rally despite intermittent corrections, may have prompted many investors to make the most of the recent decline in the market.”

There was a sharp sell-off in the market at the end of November with the benchmark indices Sensex and Nifty falling nearly 4% in the month. By the end of November, Nifty had fallen 8% from the record high in October. Most markets were worried about global factors such as the Fed’s taper announcement, rising bond yields, higher crude oil prices and a strengthening US dollar index. However, domestic institutional investors (DIIs) including mutual funds, insurance companies, banks and pension funds had invested in 30522.02 crore in November, the highest in 2021.

“There was a sharp decline in the markets for a few days around the end of the month, but it has recovered rapidly. The inflows in equity schemes were at par with the SIP book last month, indicating that investors are committed to a disciplined way of investing and are not taking hasty decisions with short-term market corrections. Moreover, markets are looking ahead and with past experience of market correction and sharp bounce, investors now understand that they should look at the long-term economic growth story,” said DP Singh, Chief Business Officer, SBI Mutual Fund. .

According to Amfi, net inflows across all five categories of open-ended schemes, income/debt oriented schemes, growth/equity oriented schemes, hybrid schemes, solution oriented schemes and other open-ended schemes including index schemes, ETFs, funds, etc. Fund schemes have reported positive inflows during November.

Income/debt oriented schemes led by fixed maturity schemes, for the first time in this financial year, even within the close-ended category.

NS Venkatesh, Chief Executive, AMFI said: “Despite the anticipation of a third wave of the pandemic and the growing uncertainty due to extreme equity market volatility, retail investors benefit and hence there is a need to demonstrate confidence in the disciplined SIP mode of savings in mutual funds. Stick to it too. , With the focus on economic revival and growth and keeping inflation within the target, on the back of RBI’s policy stance, we expect the MF industry to continue to report strong growth in the coming years, and encourage its investors to continue to grow from 2021 onwards. Will provide further value.