Net investment of Rs 15,890 crore in equity mutual funds in April, registers a growth for the 14th consecutive month

Equity mutual fund rises for 14th consecutive month

A net investment of Rs 69,883 crore came in the debt segment last month, while Rs 1.5 lakh crore was withdrawn in March. Apart from this, a net investment of Rs 1,100 crore came in gold during this period.

Ongoing volatility in domestic stock markets and foreign portfolio investors (FPI) in April amid the sell-off of Equity Mutual Fund ,Mutual Fund) has a net investment of Rs 15,890 crore. This is the 14th consecutive month when the net inflow has increased. Industry body Association of Mutual Funds in India (Amfi) on Tuesday said that this figure for April is lower than the net investment of Rs 28,463 crore in equity mutual funds in March. Equity means shares (StocksNet investment in schemes related to investment has been increasing since March, 2021. This indicates a positive sentiment among investors about such schemes. Earlier, funds were withdrawn continuously from these schemes from July 2020 to February 2021.

Reduced investment through SIP

At the same time, investment in Monthly Investment Plan (SIP) declined to Rs 11,863 crore during April, 2022 from Rs 12,328 crore in March. However, in the month without review, the number of SIP accounts reached an all-time high of 5.39 crores. In April, 11.29 lakh new SIP accounts were opened. According to the data, a net investment of Rs 69,883 crore came in the debt segment last month, while Rs 1.5 lakh crore was withdrawn in March. Apart from this, a net investment of Rs 1,100 crore came in gold during this period. Overall, the mutual fund industry saw a net inflow of Rs 72,846 crore during the month of April as against Rs 69,883 crore in the previous month

FPIs continue to withdraw investments

However, on the other hand, the process of withdrawal of foreign portfolio investors from the Indian markets continued for the seventh consecutive month in April. FPIs pulled out Rs 17,144 crore from Indian stock markets in April amid fears of an aggressive rate hike by the US central bank. Foreign portfolio investors have been net sellers for seven months till April and have pulled out a huge amount of Rs 1.65 lakh crore from equities. The main reason for this is the fear of aggressively increasing interest rates by the US central bank and the geopolitical crisis that has arisen after Russia’s attack on Ukraine. After six consecutive months of selling, FPIs were net buyers in the first week of April and had invested Rs 7,707 crore. According to depository data, FPIs pulled out Rs 17,144 crore from Indian markets in April. However, this is lower than the March net withdrawal figure of Rs 41,123 crore.