AMFI November data: Equity MF inflows drop 14% to ₹35,943 crore; investors shift from large-cap to small-cap funds

Despite this, it marked the 45th consecutive month of net inflows into equity-oriented funds, reflecting the growing popularity of mutual funds among investors, according to data from the Association of Mutual Funds in India (AMFI) released on Tuesday.

"There was heightened volatility due to various macroeconomic factors, geopolitical events, & US election results. This resulted in investors opting for a wait-and-watch approach while allocating larger amounts and thus a decline in lumpsum flows, including flattish SIP numbers for November 2024," Akhil Chaturvedi, CBO, Motilal Oswal AMC, said.

Overall, the mutual fund industry witnessed an inflow of ₹60,295 crore in the month under review as compared to ₹2.4 lakh crore in October.

Despite the decline, the industry's net assets under management rose to ₹68.08 lakh crore last month from ₹67.25 lakh crore in October.

As per the data, equity-oriented schemes witnessed an inflow of ₹35,943 crore in November as compared to a record inflow of ₹41,887 crore in October.

Within the equity schemes, sectoral thematic attracted investors with the highest net inflow of ₹7,658 crore during the month under review. However, flow in the segment was less compared to ₹12,279 crore in October and ₹13,255 crore in September.

Inflows into large-cap funds declined from ₹3,452 crore in October to ₹2,548 crore in November, while small-cap funds saw an increase from ₹3,772 crore to ₹4,112 crore during the same period.

There has been a shift from low-risk categories like large-cap and hybrid funds to higher-risk options like small-cap funds, while NFO activity slowed down last month.

Commenting on November figures, Hitesh Thakkar, Acting CEO, of ITI Mutual Fund, said, "The Indian mutual fund industry has experienced significant growth during the last five years. SIP inflows are consistently growing, which is a very good sign from a retail investment perspective."

Thakkar added that the ratio of assets under management (AUM) of mutual funds to India's GDP is around 18.1%, which is significantly lower than the global average.

"Investors should always consider appropriate asset allocation based on their risk profile and financial needs and should remain patient when the markets are volatile. In the end, time spent in the market is more important than timing the market," Thakkar added.