Growing dependence of small investors on index funds is quite evident from the latest data released by the Association of Mutual Fund of India (AMFI). Index funds received a net inflow of ₹12,313 crore in March 2022.
At the same time, Multi cap funds received a large amount of net inflow of ₹9,649 crore in the month of March 2022. This was nearly three times of inflow in large cap funds which was ₹3,052 crore. In large & mid cap funds, the inflow was ₹3,164 crore.
Flexi cap and mid cap funds also saw sizeable contribution with additional fund inflow of ₹2,549 crore and ₹2,193 crore, respectively.
Gold ETFs — in comparison — received ₹205 crore whereas other ETFs received ₹6,906 crore.
Even focussed funds and ELSS received more than ₹2,000 crore in the month of March.
However, the maximum number of folios are maintained by ELSS and large cap funds at 1.39 crore and 1.24 crore, respectively.
The flexi cap funds maintained a large number of folios at 1.16 crore whereas mid cap funds maintained 87 lakh accounts.
|Number of folios (in crore)
(Source: AMFI data)
Lately, balanced advantage funds or dynamic asset allocation funds have become quite popular with total inflow of ₹1,719 crore in the month of March.
In the last 12 months as on March 31, 2022, the Mutual Fund industry has added 1.09 crore unique investors which is also reflective of investor confidence in the mutual asset class, said N S Venkatesh, Chief Executive, AMFI.
“Flows into retail schemes in CY 2022, continue to show month on month increase, led by rising SIP contribution, which for March 2022 are at an all-time high at ₹12,328 crores, and with economy opening up due to tapering Covid prevalence in the country,” said Venkatesh.
With ₹24,789 crores flows in March 2022, mutual fund investors have only consolidated on their steadily rising returns driven by disciplined SIP-driven savings approach, he said.