MF inflows reveal strategic shift by investors towards higher growth opportunities
Sanjay Agarwal, Senior Director, CareEdge Ratings
FinTech BizNews Service
Mumbai, June 10, 2024: The Association of Mutual Funds in India (AMFI) has released Mutual Fund Industry Monthly Data for May 2024. Experts Of MF, AMC Sector share their interesting viewpoints On AMFI Data.
Sanjay Agarwal, Senior Director, CareEdge Ratings, on Mutual Funds Flows in May 2024
The Rs 58.9 lakh crore Mutual Fund industry witnessed inflows of Rs 1.11 lakh crore compared to inflows of Rs 2.39 lakh crores witnessed last month. Inflows this month were led by open ended debt funds which witnessed inflows of Rs 0.42 lakh crore (mainly liquid funds) compared to inflows of Rs 1.89 lakh crores in April 2024 and Rs 0.46 lakh crore in May 2023. The Credit Risk category continued to witness 14th straight month of outflows.
Meanwhile, inflows in equity funds have continued to record inflows for 39 months and has been the highest in this period as investors remained steady ongoing elections and volatility of foreign investors. Sequentially they nearly doubled at 83.4% in May 2024 at Rs 0.35 lakh crore. All categories witnessed inflows barring ELSS and Focused funds segments. Sectoral/Thematic Funds accounted for over 50% of the monthly inflows out of which a single NFO accounted for nearly half of this number."
Akhil Chaturvedi, MO Asset Management Executive Director & Chief Business Officer, Motilal Oswal AMC
May 2024's record-breaking equity mutual fund inflows of Rs 34,697 crore reveal a strategic shift by investors towards higher growth opportunities. The surge was significantly driven by sectoral and thematic funds and robust investments in small and mid-cap segments. This suggests a strong investor belief in the potential for sector-specific and smaller companies’ growth. The significant decline in fixed-income inflows further highlights this pivot towards equities, reflecting an optimistic market outlook amidst current economic conditions.
Madhu Nair, Chief Executive Officer at Union Mutual Fund
“MF Industry assets under management at all time high at closer to 60 lakh crore mark (59 lakh crore) on the back on strong flows across all asset classes. Equity oriented schemes have crossed 25 lakh crores for the first time as a result of strong net flows and positive market action during the month of May 2024. Strong net flows in this category have come on back of flows from existing schemes and large NFOs in the thematic space. This also shows the maturity of Indian retail investors and their belief in the long-term structural story of India despite of the general elections during the month. With the continuity of the existing political regime and policies and on the back of strong corporate earnings, we expect continuity of strong flows from domestic MF investors. We at Union Mutual Fund believe that currently Indian markets offer good opportunity to invest and would urge investors to take advantage of Amritkaal (golden period for Indian economy) and stay invested and participate in nations wealth creation while keeping in mind of self-risk appetite, life goals and asset allocation.”
