Equity's joint ventures saw cash inflows (investments exceeding redemption) of Rs 9,115 crore by March 2021. Total inflows into equity schemes appear after eight consecutive months. Among the equity funds, sector funds and equity-related savings schemes (ELSS) known as tax savings incurred Rs 2,009 crore and Rs 1,552 crore, respectively, according to data released by the Association of Mutual Funds in India (AMFI). These categories received the highest rankings in March among equity funds. ELSS entry was on the line, as by the end of the financial year, many people were opting to invest in tax savings. “Although it is too early to conclude, it seems that equity investors, who are waiting for market reform, have begun to make divisions and take a long-term view of investing, as it should be. Besides, the number of fines was lower per month, suggesting that interest booking or redistribution of other assets has decreased,” said Kaustubh Belapurkar, Director - Research Manager, Morningstar India.
Investors have strengthened their faith in systematic investment plans (SIPs), which are mainly used for investment. The SIP contribution increased to Rs 9,182 crore in March compared to Rs 7,528 crore in February 2021. The number of remaining SIP accounts increased to 3.72 crores in March compared to 3.62 crores in February. Bond funds saw a total outflow of $ 52,528 million. Redemption is due to the end of the fund requirements for companies. Liquid funds and short-term investments saw higher redemption - Rs 19,383 crore and Rs 15,847 crore, respectively. Night fees; however, it has seen a total inflow of Rs 5,027 crore. Banking and PSU funds saw total cash out of Rs 6,508 million compared to the net release of Rs 1,658 crore in February 2021. Hybrid funds saw a full inflow of Rs 6,210 crore in March compared to Rs 4,702 crore last month. Estimated interest rates saw a total investment of Rs 2,711 compared to a total of Rs 2,005 in February. Hybrid funds invest in a variety of stocks, bonds, and gold as per the scheme.
The fall in gold prices has attracted investors to gold ETFs. These plans saw a total investment of Rs 662 crore in March compared to Rs 491 crore last month. “The search for a haven and other things is likely to create some entry into the gold ETF,” said NS Venkatesh, Chief Executive, and Association of Mutual Funds in India. Total assets under the management of the mutual fund industry stood at Rs 32.17 lakh crore as of March 31, 2021, compared to Rs 32.29 lakh crore as of February 28, 2021.