Inflows in equity-linked mutual fund schemes more than doubled to Rs 25,076.71 crore in December, from Rs 11,614.73 crore in November, defining the heightened interest from retail investors in the equity markets, data released by the Association of Mutual Funds in India (AMFI) showed on Monday.
Systematic investment plans (SIPs) continued to be the most preferred medium for investment during 2021. In December 2021, monthly SIP contribution rose to an all-time high of Rs 11,305.34 crore, against Rs 11,004.94 crore in the previous month, while the number of SIP accounts in December stood at 4,90,78,547, AMFI data showed.
The calendar year 2021 turned out to be broadly positive for the MF industry, despite some volatility in the markets during the second half of the year. Overall, average assets under management of the MF industry grew by 26% year on year, from Rs 30,96,274 crore in December 2020 to Rs 37,72,696 crore in December 2021.
NS Venkatesh, chief executive of AMFI, believes that 2021 turned out to be a momentous year, with mutual funds emerging as the preferred investment destination with continued record equity flows through NFOs and ongoing investment into existing schemes. “The year has seen a remarkable growth in mutual funds with hike in inflows across all categories of funds. From an average AUM of Rs 30,96,274 crore in December 2020 to Rs 37,72,696.31 crore in December 2021, the Y-o-Y growth of 26% has set the ball rolling for the industry in 2022. SIP has been the favourite medium of consistent investing and disciplined mode of savings by the common man. This is evident from the number of accounts rising,” he said.
Flows in all four categories of open-ended schemes – growth/equity oriented schemes, hybrid schemes, solution oriented schemes and other open-ended schemes, including index schemes, ETFs and fund of funds schemes, reported positive flows in December. However, income/debt oriented schemes witnessed outflows of Rs 49,154.10 crore, the data showed.