NEW DELHI: After eight straight months of outflows, investors became net buyers of mutual fund units in March, as markets tapered off from highs during the month, presenting an opportunity to accumulate. .
Amfi data released for the month of March said investors poured in a net Rs 9,115.12 crore, against the previous months withdrawal of Rs 4,534.36 crore from equity-oriented funds, thanks to buying in all but two categories. Equity mutual funds saw a total inflow of Rs 28,023.38 crore and outflows of Rs 18,908.27 crore, both of which were significantly lower than last months figure.
Net flows were witnessed across equity fund categories. While its too early to make any conclusions, it seems like equity investors waiting on the sidelines for a market correction have started making allocations, taking a long-term investing view on equities. Additionally, the quantum of redemptions were lower for the month, suggesting profit booking/reallocation to other asset classes slowed down, said Kaustubh Belapurkar, Director Manager Research, Morningstar India.
Thematic and sectoral funds saw the biggest inflow at Rs 2,009.35 crore, while tax saving ELSS funds and midcap funds saw net buying of over Rs 1,500 crore. Flexi cap funds and focussed funds also received an inflow of over 1,000 crore.
SIP inflows in March rose to Rs 9,182.42 crore from Rs 7,528.14 crore in the previous month. Total number of SIP folios saw a marginal jump to 3.72 crore from 3.62 crore. The assets under management (AUM) from SIPs rose to Rs 4.27 lakh crore, from 4.21 lakh crore in January.