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Motilal Oswal Report
The Nifty corrects marginally by 0.3% month-on-month in November 2024 following a 6.2% decline in Oct-24. The Nifty-50 closed in the red for the second consecutive month. Notably, the benchmark index was extremely volatile and oscillated around 1,274 points before closing 74 points lower. In Nov-24, DIIs recorded inflows of $5.3 billion. In contrast, FIIs recorded the second consecutive month of outflows at $2.2 billion.
The MF industry’s total AUM scaled new heights to reach Rs 68.1 trillion in Nov’24 (+1.2% MoM), primarily fueled by a MoM increase in AUM of equity funds (Rs 520 billion), income funds (Rs 152 billion), balanced funds (Rs 68 billion), and liquid funds (Rs 51 billion). Conversely, AUM of arbitrage funds declined by Rs 23 billion, and Gold ETFs dipped by Rs 3 billion MoM.
Equity AUM of domestic MFs (including ELSS and index funds) increased 1.6% MoM to Rs 33.1 trillion in Nov-24, led by the slower pace of redemptions at Rs 296 billion (down 19.8% MoM) as the market indices (Nifty closed flat MoM) and the sales of equity schemes dipped 19.4% MoM to Rs 699 billion. Consequently, net inflows moderated to Rs 403 billion in Nov’24 from Rs 498 billion in Oct’24. Investors continued to park their money in mutual funds, with inflows into systematic investment plans (SIPs) being stable at Rs 253.2 billion in Nov’24 (flat MoM and up 48.3% YoY).
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