The overall net flows across mutual funds have recorded an outflow of Rs 1.59 lakh crore, led by debt-oriented schemes.
Flows in small-cap mutual funds have turned negative for the first time since September 2021. This comes after the Securities and Exchange Board of India asked mutual funds to proactively protect investor interest as "froth" built up in the broader end of the Indian equity market.
Outflows in the mutual fund industry were primarily driven by a substantial outflow of Rs 1.57 lakh crore in liquid funds.
Indian investors continued to allocate funds into the nation's equity funds for the 37th consecutive month in March. In March, a total of 21 schemes were launched.
Net investment into equity and equity-linked schemes declined 15.75% over the previous month to Rs 22,633.15 crore in March, according to data released by the Association of Mutual Funds in India on Wednesday.
Category-Wise Trends
Small-cap funds registered outflows of Rs 94.17 crore in March, compared with Rs 2,922.45 crore in February. Large-cap schemes saw inflows of Rs 2,127.79 crore, compared to Rs 921.14 crore inflows in the previous month.
Mid-cap schemes received Rs 1,017.69 crore, compared with Rs 1,808.18 crore in February. Inflows into multi-cap funds stood at Rs 1,827.45 crore against Rs 2,414.04 crore.
Liquid Funds
Liquid funds, used by corporates to park short-term cash, saw outflows of Rs 1.57 lakh crore, compared with inflows of Rs 83,642.33 crore in the previous month.
Outflows from credit-risk funds totaled Rs 321.12 crore. These schemes recorded outflows of Rs 365.90 crore in February.
Money-market fund outflows stood at Rs 8,719.75 crore in March, against an inflow of Rs 136.73 crore in February.
The debt-oriented funds witnessed outflows of Rs 1.98 lakh crore in March against Rs 63,808.82 crore of inflow in the previous month.
SIP Contributions
SIP contribution to mutual funds industry reached a new peak, standing at a record Rs 19,271 crore in March, compared with Rs 19,186 crore in January.
Net Flows
Overall there was a net outflow of Rs 1.59 lakh crore across debt and equity schemes, compared to Rs 1.18 lakh crore inflows in the previous month
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