Mutual funds: Equity schemes strike a chord with retail investors in 2023. Details here
In the calendar year 2023, investors’ interest in equity-oriented mutual funds was noticeably high. It is seen as a direct impact of the ongoing bull run of broader market indices. BSE Sensex gave an annual return of 16 percent, so the growing interest of investors in equity is quite understandable.
As far as mutual funds are concerned, total inflow into equity schemes remained in the positive territory every month. Conversely, inflow into debt schemes remained in negative for seven out of 11 months, shows the Association of Mutual Funds in India (AMFI) data as on Nov 30, 2023.
Consequently, cumulative inflow into equity funds for the year 2023 stood at ₹1,44,576crore,more than four times the cumulative inflow in debt mutual funds which stood at ₹29,470 crore (see the table below).
The highest equity inflow of ₹20,534 crore was reported in the month of March while the lowest of ₹3,240 crore was witnessed in May.
Thanks to the continuous rise in equity inflow, total AUMs of equity funds stood atRs 20.33 lakh crore whereas the debt schemes’ AUMs stood at ₹13.57 lakh crore as on Nov 30, 2023.
With the investors’ interest gradually moving towards equity, the overallproportion of equity-oriented schemes has now surpassed that of debt schemes.
The latest AMFI data shows the equity-oriented schemes’ proportionate share has risen to 54.9 percent of the industry assets in Nov 2023, higher than 51.7 percent in Nov 2023.
On the other hand, the proportionate share of debt-oriented schemes is 18.5 percent of industry assets in Nov 2023 lower than 19 percent in Nov 2022.
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