Market rally, steady SIPs push mutual fund equity AUM to Rs 44.4 trillion in Nov: Nuvama

Monthly SIP inflows remained robust at Rs 294 billion, broadly flat on a month-on-month basis, underlining continued retail participation despite market volatility, the report said.

A sharp revival in lump-sum investments which surged 274% month-on-month to Rs 98.8 billion helped push active equity net inflows up by 22.2% from October to Rs 393 billion during the month, it added.

Notably, in November,the Nifty 50 index rose 1.9%. This, the report said, contributed to a 1.5% month-on-month increase in active equity AUM to Rs 44.4 trillion.

For the financial year so far, active equity net inflows stood at Rs 2.9 trillion, representing about 8% of the industry's opening AUM, though still 12.9% lower year-on-year, it said.

Large- and mid-cap funds attracted the largest share of inflows at 27%, followed by flexi-cap funds at 20.7% and small-cap funds at 11.2%.

Thematic funds accounted for a relatively modest 4.7% of net inflows. Seven new active equity fund offers (NFOs) launched during the month mobilised Rs 26.6 billion, while existing schemes saw inflows jump 32.2% month-on-month to Rs 366.7 billion.

Passive funds, including exchange-traded funds (ETFs) and index funds, recorded net inflows of Rs 154 billion in November, slightly lower than the previous month.

Gold ETFs and overseas fund-of-funds together attracted Rs 39 billion. Arbitrage funds, however, saw net inflows decline sharply by nearly 40% month-on-month to Rs 42 billion.

In the said period, the flows into debt-oriented schemes remained subdued, with net inflows of Rs 144 billion, while liquid funds witnessed significant net outflows of Rs 406 billion during the month, reflecting short-term treasury and institutional movements, the report said.

Nuvama Research said the recovery in equity markets, combined with the continued strength of SIP inflows, should support overall industry volume growth in the coming months. (ANI)