Equity-oriented mutual funds have witnessed net inflows in March for the first time in last nine months. According to Association of Mutual Funds in andar bahar game (AMFI) data, equity funds recorded healthy net inflows to the tune of Rs 9,115 crore in March. Highest net inflows across the equity scheme categories were recorded by the thematic and sectoral schemes worth Rs 2,009 crore in March, whereas, multi cap fund and value-oriented funds saw net outflows of Rs 191 crore and Rs 199 crore in the last month of FY21. All other categories saw net inflows.
"While it's too early to make any conclusions, it seems like equity investors waiting on the sidelines for a market correction, have started making allocations taking a long-term investing view on equities, as should be the case. Additionally the quantum of redemptions were lower for the month, suggesting profit booking/reallocation to other asset classes slowed down," says Kaustubh Belapurkar, Director - Manager Research, Morningstar andar bahar game.
Thematic funds, led by ESG received significant inflows, adds Belapurkar.
Equity-oriented schemes saw redemptions worth Rs 18,908 crore in March, 26 per cent lower than the earlier month.
Inflows via SIP saw a huge jump from Rs 7,528 crore recorded in February 2021 to Rs 9,182 crore in March. "The high numbers are due to the spillover effect from February, as it was a shorter month and also, the month end was weekend, non -business day. That has been carried in March," says NS Venkatesh, Chief Executive, AMFI.
Equity schemes in March this year have shown humungous one-year returns due to lower base effect. 19 equity schemes, as per data by Value Research, had delivered triple digit returns in the last one year. (Data as on March 22, 2021). Quant Small Cap Fund offered the highest returns of 168 per cent among the equity schemes, followed by ICICI Prudential Technology Fund which gave 142 per cent and ICICI Prudential Commodities Fund (138 per cent) in the same time period.
Fund managers remain constructive on andar bahar gamen equities with longer-term view. "We recommend investors to use the near term corrections as buying opportunity to create a long term equity exposure," says Sorbh Gupta, Fund Manager- Equity Quantum Mutual Fund.