Equity MFs see all-time high net inflow of ₹28,463 cr. in March
The Hindu
Equity oriented categories have been witnessing consistent net inflows since March 2021
Equity mutual funds attracted an all-time high net inflow of ₹28,463 crore in March, on continued interest by retail and HNI investors, who used market correction as a good buying opportunity.
The net infusion, which also marks the 13th straight month of net inflow, indicates the underlying bullishness among investors despite record outflow by foreign funds.
This was significantly higher than the net inflow of ₹19,705 crore in February, ₹14,888 crore in January and ₹25,077 crore in December 2021, data from the Association of Mutual Funds in India (AMFI) showed on Friday.
With this, during FY 2021-22, the equity-oriented categories received a robust net inflow of ₹1,64,399 crore, compared with the net outflow of ₹25,966 crore during the FY 2020-21.
Akhil Chaturvedi, Chief Business Officer, Motilal Oswal AMC attributed the latest monthly inflow to the continued interest by retail and HNI investors to make use of market opportunities and enter in corrections for better valuations.
"On-going Russia-Ukraine crisis has kept the market volatile, giving advantage to investors in making higher allocations or re-balance their existing allocations. All said, risk-appetite for equities is certainly on rise which is very healthy for markets and investors for long-term wealth creation," he added.
Himanshu Srivastava, Associate Director - Manager Research, Morningstar India, said that geopolitical tension due to the raging war between Russia and Ukraine and concerns over the surging crude prices triggered a sharp correction in the market towards the end of February and early March. This provided investors a good entry point into equities.