Tag: AMFI

Debt mutual fund inflows surge in January: Is it the right time to invest?

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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In a turnaround, debt mutual funds experienced an inflow of ₹76,468.96 crore in January 2024, marking a significant shift from ₹75,559.93 crore outflow witnessed in December. The latest data from the Association of Mutual Funds in India (AMFI) reveals a positive trend for the debt fund segment.

Industry experts believe that time is ripe to take exposure into some debt categories as the interest rate scenario eases across the globe.

Liquid funds emerged as the frontrunners, recording the highest inflows at ₹49,467.67 crore, a stark contrast to the ₹9,675.27 crore outflow recorded in December.

Money market funds followed closely behind, registering the second-highest inflows at around ₹10,651.05 crore. This renewed interest in money market funds suggests a growing preference for safer investment options, aligning with the broader market sentiment.

Gilt funds, that investment advisors are saying are well placed at the moment, saw inflows close to ₹500 crore in January.

Industry experts attribute this positive shift to various factors, including improved economic indicators, easing concerns over interest rates, and a general appetite for debt instruments in a stabilizing market environment.

Investors seem to be recalibrating their portfolios, finding value in certain debt fund categories after a period of cautious retreat.

The funds saw a spike in returns after the recent slump in yields post the Interim Budget.

Following the budget announcement, gilt funds experienced a surge in the value of their holdings by an average of 0.65% on Budget Day.

Simultaneously, dynamic bond funds reported an average increase in net asset value (NAV) of 0.51 percent, according to data from Value Research.

The Interim Budget, revealed on February 1, played a pivotal role in shaping this positive trajectory. The lower-than-anticipated borrowing plan announced in the budget led to an 8-basis-point decline in the 10-year government bond yield to 7.04%.

Market experts and investment advisors believe that the long duration bond funds and gilt funds have a positive outlook for this year and hence can be a good investment option.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

SIP inflows cross ₹18,000 crore for the first time in January

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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In January 2024, systematic investment plans (SIPs) witnessed a surge, reaching an all-time high of ₹18,838 crore, indicating a significant uptick from the previous month’s ₹17,610 crore. The robust growth in SIP inflows is complemented by an increase in the number of new SIP registrations, setting a milestone at 51.84 lakh.

According to the Association of Mutual Funds in India (AMFI), the SIP assets under management (AUM) for January 2024 stood at ₹10.26 lakh crore, showcasing an increase compared to December 2023’s ₹9.96 lakh crore.

The number of SIP accounts also reached 7.92 crore, up from 7.63 crore in December 2023.

Venkat Chalasani, Chief Executive of AMFI, expressed his insights on the January 2024 data. “As we reflect on the latest data within the mutual fund industry, it is abundantly clear that we are in an era of growth and participation through financial savings instruments.”

He highlighted the surge in SIP accounts and the milestone of over 51.84 lakh new SIP registrations, emphasising the commitment of investors towards disciplined wealth creation.

“Moreover, the industry’s net AUM soaring to ₹52.74 crore further accentuates the resilience and potential of mutual funds as a preferred investment avenue,” he added.

Chalasani also underlined the sustained retail participation across the country, attributing it to increasing financial literacy and recognising the crucial role played by Asset Management Companies (AMCs) and dedicated distributor fraternity in fostering a culture of informed investment.

Addressing the ongoing regulatory reforms and the industry’s shift towards SIPs, Chalasani expressed confidence in the Indian mutual fund industry’s trajectory of sustained growth and relevance.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Small cap inflows dip in January, large and midcap funds shine: Where should you invest now?

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Equity mutual funds have continued their upward trajectory, marking the 35th consecutive month of inflows. According to data released by the Association of Mutual Funds in India (AMFI), the latest figures for January 2024 reveal a surge in inflows, reaching ₹21,749 crore.

However, a closer look at the data reveals interesting dynamics within different categories of equity mutual funds.

In January, small-cap funds witnessed an inflow of ₹3,257 crore, reflecting a marginal decline from ₹3,857 crore in December 2023.

On the other hand, largecap funds witnessed inflows of around ₹1,287.05 crore as against an outflow of ₹280.94 crore in December.

Mid-cap funds, however, emerged as a focal point of increased investor interest, with an inflow of ₹2,061 crore in January, up from ₹1,393 crore in the previous month.

The shift in preferences among investors has sparked discussions within the industry about the factors driving these changes.

Sunil Subramaniam, MD & CEO of Sundaram Mutual Fund, highlighted the premium positions of midcaps and smallcaps, stating, “The midcaps are at a 14% premium, and smallcaps at a 22% premium. So from a retail investor’s perspective, I think the guidance from the AMCs, or its distribution partners, has been very good.”

He also emphasised the success observed in the large-cap and larger midcap flows, attributing it to robust Systematic Investment Plan (SIP) numbers and a continued trend of investors taking a medium-term view of the market.

Anthony Heredia, MD & CEO of Mahindra Manulife Mutual Fund, provided insights into the evolving trends, stating, “This is the first couple of months we are seeing a reasonable decline in the smallcap. In fact, more than the net flow, look at the gross flow. The gross flows on smallcaps are less than 15% of the total flows.”

He suggested a shift in investor focus towards large and midcap funds, as well as flexi and multicap funds, which he views as key products in the current market landscape.

In light of the data, industry experts see opportunities for fund managers to diversify.

Subramaniam noted the favorable conditions created by the significant Foreign Investor Investment (FII) outflow of ₹25,000 crore in January, presenting a valuable opportunity for fund managers to pick up quality stocks that were sold off.

Despite the Reserve Bank of India’s decision to maintain the status quo on various bank rates and continue with a withdrawal of accommodation stance, Gopal Kavalireddi, Vice President of Research at FYERS said that the equity market remains subject to both domestic and international data points and events that could induce volatility.

As the current earnings season shows signs of improved operational management by companies, Kavalireddi advises investors not to be unduly worried.

Instead, he suggests reallocating capital by diversifying investments appropriately across undervalued asset classes and geographies.

In a market influenced by both positive and challenging factors, this strategic approach can help investors navigate uncertainties and capitalise on opportunities.

Melvyn Santarita, Analyst, Morningstar Investment Research India Private Limited suggested investors to note that while both the midcap and the small cap categories have the potential to deliver good returns, these categories inherently are volatile with sharp drawdown risks.

“Therefore, investors should have a long-term time horizon while investing in these categories. Opting to invest in these categories via the Systematic Investment Plan (SIP) route is a good way by which investors can ride the volatility whilst dollar cost averaging over long periods,” he said.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Equity MFs see 35th month of inflows in January, debt funds attract ₹76,469 crore

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Equity mutual funds in India have maintained their upward trajectory, marking the 35th consecutive month of inflows, as per data released by the Association of Mutual Funds in India (AMFI). The latest figures for January 2024 reveal a surge in inflows to ₹21,749 crore, up from ₹16,997 crore in December 2023.

In a detailed breakdown, small-cap funds witnessed an inflow of ₹3,257 crore in January, showing a marginal decline from ₹3,857 crore in December 2023.

Largecap funds witnessed inflows of around ₹1,287.05 crore as against an outflow of ₹280.94 crore in December.

Mid-cap funds, however, saw increased investor interest with an inflow of ₹2,061 crore, up from ₹1,393 crore in December.

Meanwhile, credit risk funds experienced an outflow of ₹303 crore, down from ₹368 crore in the preceding month of December 2023.

Exchange-Traded Funds (ETFs) saw a significant uptick in inflows, reaching ₹571 crore in January compared to ₹200 crore in December 2023.

This growth signals a robust investor interest in ETFs in the early months of 2024.

Liquid funds, typically considered a safer haven, recorded an inflow of ₹49,468 crore in January, rebounding from the outflow of ₹39,675 crore in the previous month.

New Fund Offers (NFOs) continued to attract investor attention, raising ₹6,817 crore in January.

Breaking down the sectoral trends further, dividend yield funds experienced an inflow of ₹382 crore in January, marking an increase from ₹279 crore in December 2023.

Equity-Linked Savings Schemes (ELSS) saw a substantial turnaround with an inflow of ₹532 crore, compared to an outflow of ₹314 crore in the preceding month.

Total debt scheme inflows reached ₹76,469 crore, demonstrating a positive shift from the outflow of ₹75,560 crore in December 2023.

Hybrid funds, combining equity and debt components, also observed a surge, attracting ₹20,637 crore in January, up from ₹15,009 crore in December.

Corporate bond funds saw an impressive inflow of ₹1,301 crore, significantly higher than the ₹188 crore inflow recorded in December.

The total assets under management (AUM) for the mutual fund industry climbed to ₹52.74 lakh crore.

Commenting on the data, Sunil Subramaniam, MD & CEO of Sundaram Mutual Fund, expressed optimism.

He emphasised the success of the industry in repositioning large-cap and larger mid-cap funds, given the significant valuation differences.

He also highlighted the strength of Systematic Investment Plans (SIPs) and the positive trend in mid-cap investments.

Anthony Heredia, MD & CEO of Mahindra Manulife Mutual Fund, noted a shift in investor preference towards large and mid-cap funds, highlighting the decline in small-cap flows.

He also discussed the significance of multi-asset funds in attracting fixed-income investments.

While NFOs attracted substantial funds, Heredia cautioned against thematic and sectoral equity NFOs, urging investors to maintain diversification across capitalisations.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Thematic funds lead Dec equity inflows, small caps follow: Where should you invest now?

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Sectoral or thematic funds witnessed the highest inflows in the equity category in the month of December, according to data released by AMFI (Association of Mutual Funds in India). They recorded net inflow of ₹6,006 crore, reflecting a 205% increase compared to the previous month.

In November 2023, thematic funds saw ₹4,041-crore inflows.

Thematic funds are equity mutual funds that invest in stocks tied to a theme. For instance, an infrastructure theme fund will invest in cement, power, steel, among other sectors.

Talking about the rising inflows in the category, Melvyn Santarita, Analyst and Manager Research at Morningstar Investment Research India, said the launch of four new funds in the month, namely Axis India Manufacturing Fund, DSP Banking & Financial Services Fund, Kotak Healthcare Fund and Quant Commodities Fund supported the category.

These new fund offers (NFOs) collectively amassed $4,259 crore, significantly contributing to the category’s heightened influx.

Moreover, the small-cap category maintained its robust momentum, experiencing net inflows of ₹3,857.5 crore in December. Notably, the launch of Motilal Oswal Small Cap Fund was instrumental in garnering ₹1,226 crore during its NFO stage.

Gopal Kavalireddi, Vice President of Research at FYERS, highlighted investors’ increased allocation to this market segment, considering the underperformance of large caps over the past nine months.

Conversely, the mid-cap category observed a comparatively moderate flow of ₹1,393 crore in December.

“This revealed a noteworthy dip in comparison to the preceding four months (August to November), potentially attributed to investors opting to capitalise on profits within this category, given its recent significant surge. Despite a fair bit of redemptions in the small-cap category, the quantum of purchases outweighed the outflows considerably,” Santarita pointed out.

However, the equity landscape saw categories like large-cap (₹280.9 crore), focused (₹490.9 crore), and ELSS (₹313.5 crore) experiencing net outflows.

The investors’ preference for passive investment vehicles, such as index funds and ETFs, might be a contributing factor to the disappointing flows in the large-cap category over the past year, as per Santarita’s insights.

In the hybrid schemes category, net flows reached ₹15.009 crore, propelled by an influx of ₹10,645 crore into arbitrage funds.

This shift in allocation between equity and debt has been a consequence of Indian markets soaring to all-time highs, noted Kavalireddi, highlighting the inflows into multi-asset allocation funds and balanced advantage funds.

A look at calendar year 2023

For the calendar year 2023, equity funds amassed net inflows of ₹1.61 lakh crore, with a significant 39% portion, amounting to ₹63,949 crore, being directed towards mid- and small-cap mutual funds.

Sectoral/thematic funds emerged as the subsequent favoured category, amassing ₹30,841 crore for the year.

On the contrary, large-cap and focused funds were the only sectors experiencing negative inflows of approximately 1.7% each.

Where should you invest now?

Regarding investment strategies, Kavalireddi suggested a need for portfolio rebalancing between equity and debt, emphasising the substantial outperformance of Nifty mid-cap and Nifty small-cap by 46.6% and 55.6%, respectively, in just nine months.

“With an anticipated reversal in the interest rate cycle, investors are urged to consider this and reallocate across market capitalisations,” he said.

Kavalireddi also highlighted the likelihood of the broader market undergoing consolidation in the current year, citing extreme valuations in mid and small caps compared to the relatively underperforming large-cap stocks.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Debt funds see over ₹75,500 crore outflows in December: Should you still invest for long-term?

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Debt funds witnessed an outflow of ₹75,560 crore in December, marking a rise from the previous month’s ₹4,706.7 crore outflow, according to Association of Mutual Funds in India (AMFI) data. Liquid funds saw ₹39,675 crore outflow, while credit risk funds experienced an outflow of ₹368 crore as compared to ₹253.7 crore in November.

Conversely, corporate bond funds observed an inflow of ₹188 crore, contrasting the previous month’s outflow of ₹1,578.4 crore.

Other categories with less than one year of maturity also witnessed net outflows.

Himanshu Srivastava, Associate Director at Morningstar Investment Research India, attributed the December outflows to corporate advance tax requirements, primarily due to quarter-end obligations. Liquid funds bore the brunt of this trend, witnessing the highest net outflows, along with other categories with less than a year’s maturity.

“While the broader consensus is that the increasing interest rate cycle has peaked, there is a lack of clarity over the timing of the possible reversion in the interest rate scenario. Such a scenario has complicated investment decisions in this segment for investors. Moreover, the robust performance of equity markets has been drawing increased attention from investors, resulting in them shifting from other asset classes towards equities,” Srivastava said.

In an earlier conversation with CNBC-TV18, Sandeep Yadav, Head of Fixed Income at DSP Mutual Fund, stressed the cyclical nature of debt funds in response to ongoing interest rate cycles.

Yadav added that the current high yields are an opportune moment for investors, indicating that as yields decrease, debt funds become more attractive.

Yadav emphasised the need for a vigilant approach, advocating close monitoring of RBI policy rates, fiscal policies, and global trends influencing yields and equity indices.

He advised investors to consider the aggressive segments within the debt category, especially in declining yield scenarios, recommending long-duration bonds and dynamic bond fund categories.

Here are the 5-year and 10-year returns of some of the Dynamic Bond Funds:

(Source: Moneycontrol)

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

SIP contributions rise 3.14% to reach all-time high of ₹17,610 crore in December

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Systematic Investment Plan (SIP) contributions soared by 3.14% in December 2023 to hit an all-time high of ₹17,610.16 crore as compared to ₹17,073.30 crore in November. The number of SIP accounts climbed to 7.63 crore, the highest ever recorded, compared to 7.44 crore in the preceding month of November 2023.

The SIP Assets Under Management (AUM) surged to ₹9.95 lakh crore in December 2023, up from ₹9.31 lakh crore in November 2023.

December 2023 saw an influx of 40,32,643 new SIP registrations, underlining the growing interest among investors in systematic investment planning.

It’s noteworthy that the monthly gross SIP inflows, which were around ₹8,000 crore in FY20, have now scaled to an all-time high of ₹ 17,610 crore in December 2023.

If we look at the cumulative SIP inflows for the initial nine months of FY24, the same stands at ₹1.42 lakh crore.

Furthermore, for the calendar year 2023, the total SIP inflows tallied at ₹1.84 lakh crore.

SIPs have gained traction among Indian investors owing to their structured and enduring investment approach. The strategy of regular, small investments over time empowers investors to navigate market fluctuations while leveraging the benefits of compounding.

According to Robin Arya, smallcase Manager & Founder, GoalFi, SIP trends show that investors are adopting a proactive approach to wealth building.

Details of new SIPs registered and discontinued during FY22-23 are as under: (SIP count in lakh):

The industry, which took nearly 50 years to achieve its first ₹10 lakh crore AUM, has accelerated growth, indicating a shift in strategy and technology-driven advancements that have facilitated a quicker expansion in recent times, AMFI said.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Mutual fund industry AUM crosses ₹50 lakh crore-mark for the first time in December

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The mutual fund (MF) industry’s Assets Under Management (AUM) reached ₹50.78 lakh crore for the first time in December 2023, Association of Mutual Funds in India (AMFI) data showed. MF folios surged to an all-time high of 16.49 crore, showcasing an increase from the 16.18 crore recorded in November 2023.

Specifically, retail MF folios, comprising equity, hybrid, and solution-oriented schemes, reached 13.19 crore in December 2023, displaying a surge from 12.92 crore in November 2023.

Retail AUM, encompassing equity, hybrid, and solution-oriented schemes, stood at ₹28.88 lakh crore in December 2023, with an average AUM of ₹28.36 lakh crore, the AMFI data showed.

The equity inflows continued for 34 consecutive months, reaching ₹16,997 crore in December 2023 as compared to ₹15,514.5 crore in the previous month.

Breaking down the inflows by fund categories, small-cap funds saw an inflow of ₹3,857 crore in December, marking an increase from November’s ₹3,699 crore.

Large-cap funds experienced an outflow of ₹281 crore, while ₹307 crore inflow was recorded in November. In contrast, mid-cap funds recorded an inflow of ₹1,393 crore, showing a decrease from the previous month’s inflow of ₹2,666 crore.

Meanwhile, ETF inflows stood at ₹200 crore, down from ₹833.62 crore recorded in November.

Liquid funds witnessed an outflow of ₹39,675 crore, a significant jump from the outflow of ₹644.7 crore in the previous month.

Similarly, credit risk funds saw an outflow of ₹368 crore, rising from ₹253.7 crore in November.

On the other hand, corporate bond funds observed an inflow of ₹188 crore, contrasting the outflow of ₹1,578.4 crore in the previous month.

The dividend yield category saw an uptick in inflows, surging to ₹279 crore in December 2023 from ₹173 crore in the previous month.

ELSS (Equity Linked Savings Scheme) recorded an outflow of ₹314 crore compared to the outflow of ₹104.4 crore in the preceding month.

Furthermore, within the debt scheme category, there was a substantial outflow of ₹75,560 crore, a significant rise from the outflow of ₹4,706.7 crore in the prior month.

The hybrid fund segment witnessed inflows of ₹15,009 crore compared to ₹13,538 crore in the previous month.

Further highlighting investor behaviour, Systematic Investment Plan (SIP) inflows totalled ₹17,610 crore in December 2023.

As per Akhil Chaturvedi, Chief Business Officer, Motilal Oswal Asset Management Company, the overall investor sentiment remained buoyant on back of persistence of markets strength.

AMFI’s Chairman, Navneet Munot outlined the mutual fund industry’s trajectory, aiming for a ₹100 lakh crore AUM and 10 crore investors in the near future.

Reflecting on the industry’s rapid growth, AMFI’s Chief Executive, Venkat Chalasani, highlighted the significant leap from ₹40 lakh crore to ₹50 lakh crore AUM within just over a year.

Chalasani credited the concerted efforts of the entire mutual fund ecosystem, including AMCs, regulators, and distributors, in expanding investor reach and penetration across the nation.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

IRFC, PFC to be categorised as largecaps; Suzlon to become a Midcap stock

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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State-run companies like Power Finance Corporation (PFC), IRFC and seven other companies will be classified as “largecap” companies from their earlier classification of “midcap,” according to data released by the Association of Mutual Funds in India (AMFI).

Other stocks which will now be classified as largecap stocks include Macrotech Developers, Polycab, REC, Shriram Finance, Union Bank of India, Indian Overseas Bank and the recently listed Jio Financial Services will also be classified as “largecap” stocks.

On the other hand, stocks like UPL, Adani Wilmar, PI Industries and six others have been downgraded to the “Midcap” category from their earlier classification of “largecap.”

IRCTC, Bosch, Tube Investments, Samvardhana Motherson and Hero MotoCorp will now be classified as “Midcap” stocks from the “largecap” classification earlier.

Other state-run names like Mazagon Dock, SJVN along with stocks like Suzlon have been categorised as “Midcap” stocks from the earlier “Smallcap” classification. Other names that have been promoted into Midcap category include Lloyds Metals, Kalyan Jewellers, KEI Industries, CreditAccess Grameen, Exide, Nippon Life AMC, Ajanta Pharma, Narayana Hrudayalaya and Glenmark Pharma.

New entrants in the Midcap category include names like Tata Technologies, JSW Infra and IREDA, all of which are recent listings.

Other stocks like Pfizer, Vinati Organics, Atul, Whirlpool, Sumitomo Chemicals, Laurus Labs, Aditya Birla Fashion, Bata, Bharat Dynamics have been downgraded from the “Midcap” category to the “Smallcap” category.

Brokerage firm Nuvama Alternative & Quantitative Research said that the change in categorisation will not necessarily result in incremental inflows and outflows.

“Active equity fund managers may choose to add / remove, increase / reduce weightage in the stocks from their respective portfolio, depending upon the fundamental, non-quantitative rationale,” the Nuvama note said.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

November AMFI data trends: MF industry AUM nears ₹50 lakh crore-mark, 33 months of equity inflows, more

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The November 2023 mutual fund industry data released by Association of Mutual Funds in India (AMFI) highlighted some key insights. While mutual fund industry’s assets under management (AUM) reached ₹49.04 lakh crore in the month, equity funds witnessed net inflows marking it the 33rd consecutive month of net inflows.

Here are key trends revealed by the AMFI data:

Mutual fund industry AUM nears ₹50-lakh crore landmark

The total assets under management stood at ₹49.04 lakh crore in November versus ₹46.71 lakh crore month-on-month (MoM).

According to Gopal Kavalireddi, Vice President of Research at FYERS, the benchmark indices hitting all-time highs in November boosted the mutual fund industry.

“Equity AUM hit an all-time high on the back of excellent performances from Nifty 50 (5.52%), Nifty mid cap 100 (10.37%) and Nifty small cap 100 (12.03%),” he said.

Equity funds see inflows for 33rd consecutive month

The equity segment continued its buoyant trend for the 33rd consecutive month of positive net flows in November. Mid- and small-cap equity funds continue to receive the bulk of the inflows, accounting for 41% out of the total equity inflows.

Small-cap funds saw the highest inflows among equity funds at ₹3,699 crore, trailed by mid caps at ₹2,666 crore and sector/thematic funds at ₹1,965 crore.

Fund flows into large caps continue to be tepid, but investors continue to opt for index funds, pouring in ₹1,353 crore for the month.

“Both the mid-cap and the small-cap indexes have seen a sharp rally over the last six months and one year. Consequently, investors have also flocked to this category with ever increasing flows,” said Melvyn Santarita, Analyst at Morningstar Investment Research.

Santarita, however, added that these categories are inherently volatile with sharp drawdown risks. Therefore, investors should have a long-term time horizon while investing in these categories.

“Opting to invest in these categories via the SIP route is a good way by which investors can ride the volatility whilst dollar cost averaging over long periods,” he added.

SIP contributions cross ₹17,000-crore mark for the first time

The Indian mutual fund industry has witnessed an unprecedented surge in systematic investment plans (SIPs).

According to data released by AMFI, SIP contributions soared to a historic high of ₹17,073.30 crore in November.

Debt funds see outflows

Debt mutual funds have witnessed an outflow of ₹4,706.75 crore in November against ₹42,634-crore inflow reported in October. Except for five categories — money market, long duration, banking and PSU, gilt and floater — all other categories saw net outflows.

Multi asset funds see largest inflows in the hybrid category

The multi asset category has seen the largest inflows in the hybrid category, second only to arbitrage.

Investors seem to be diversify across other asset classes like commodities and want to participate in multi asset funds, said Anand Vardarajan, Business Head, Institutional Clients, Banking, Alternate investments & Product Strategy, Tata Asset Management.

“Arbitrage flows continue to be very strong. Yields coupled with tax attractiveness continue to attract investor interest in this category,” he said.

NFOs raise ₹2,583 crore in the month

A total of 14 schemes were launched in November 2023 in both open-ended and close-ended categories, raising a total of ₹2,583 crore. Six schemes were from the equity category and accounted for ₹1,907 crore of funds collected in the month.

“November witnessed the launch of three sectoral/thematic funds (Aditya Birla Sun Life Transportation and Logistics Fund; Kotak Consumption Fund; quant Momentum Fund) and they cumulatively garnered ₹1,315 crore. Similarly, Helios Flexi Cap Fund managed to garner ₹551 crore thus aiding the flexi cap category which managed to cumulatively garner ₹1,667.5 crore during the month,” said Melvyn Santarita, Analyst, Morningstar Investment Research.

Gold ETFs dip to ₹333 crore

The quantum of net flows in gold ETFs dipped to ₹333 crore in November from ₹841 crore in October.

With the ongoing geopolitical tensions, US inflation still higher than the desired number, the appeal of gold as a safe haven and hedge against inflation should continue.

“Recently, gold prices in dollar terms scaled new highs after going past the $2,100 per ounce mark. Given this backdrop, there could be some profit-booking in the near term. However, with the perceived risks overall, flows could continue to be positive going ahead,” said Santarita.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow