Equity mutual funds see net inflows for 1st time in 8 months

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After outflows in the last eight consecutive months, equity mutual funds saw net inflows (investments exceeding redemption) of Rs 9,115 crore in March 2021. However, debt funds saw net outflows of Rs 52,528 crore due to year-end factors.

Among equity funds, sectoral funds and equity-linked saving schemes (ELSS) popularly known as tax-saving mutual funds got inflows of Rs 2,009 crore and Rs 1,552 crore, respectively, according to data released by Association of Mutual Funds in India (Amfi). Mid-cap funds got Rs 1,502 crore during the month and Flexi cap funds received Rs 1,386 crore.

Explained

Sectoral funds, ELSS gain

Among equity funds, sectoral funds and equity-linked saving schemes (ELSS), popularly known as tax-saving mutual funds, got inflows of Rs 2,009 crore and Rs 1,552 crore, respectively, according to data released by Association of Mutual Funds in India

Significantly, investors stepped up their investments through systematic investment plans (SIP), which are primarily used to invest in equity funds. Investments through SIP went up to Rs 9,182 crore in March compared to Rs 7,528 crore in February 2021.