Thanks to a growing reliance on systematic investment plans (SIPs) and a number of new fund offers (NFOs), equity mutual funds saw a spike of 31 percent in their net inflow, shows the latest AMFI (Association of Mutual Funds in India) data for the month of March.
Investments via SIPs crossed ₹14,000 crore for the first time ever as they touched ₹14,276 crore against ₹13,686 crore in the previous month.
At the same time, net outflow of debt funds saw a rise of 311 percent from ₹13,815 crore to ₹56,884 crore.
The spike in equity funds can be partly attributed to a massive inflow to large cap funds, dividend yield funds and ELSS funds.
For instance, large cap mutual funds saw a net inflow of ₹911 crore against ₹353 crore in the previous month. Dividend yield funds saw an inflow of ₹3715 crore against ₹47.9 crore in February.
| Category of equity schemes | Net inflow in March |
| Large cap funds | ₹911 crore |
| Dividend yield | ₹3715 crore |
| ELSS | ₹2,685 crore |
| Index funds | ₹27,228 crore |
Similarly, ELSS funds saw an inflow of ₹2,685 crore against an inflow of ₹981 crore.
Besides these, index mutual funds also saw a massive jump in their net inflows from ₹6,244 crore in February to ₹27,228 crore in March, an increase of 336 percent.
New launches
The month of March also saw a launch of 24 new fund offers of open-ended schemes and 21 close ended schemes.
Out of the open-ended schemes, there were 14 index funds, 5 ETFs, one fund of funds investing overseas, one ELSS scheme, one dividend yield fund, one sectoral and one long duration fund.
Debt schemes
Among the debt fund schemes, maximum outflow of ₹56,924 crore was seen in the liquid funds followed by money market funds of ₹11,421 crore.
Conversely, some categories of debt funds saw an inflow in March such as corporate bond funds that saw an inflow of ₹15,626 crore and banking & PSU funds that saw an inflow of ₹6,496 crore.
