The total cash inflow in Mutual Fund (MF) schemes even though Systematic Investment Plans (SIPs) has spiked in March 2021 to touch Rs 9,182 crore in comparison to total SIP inflow of Rs 7,528 crore in February 2021. The robust SIP inflow of Rs 9,182 crore in March 2021 was the highest ever SIP inflow, surpassing the preceding highest figure of Rs 8,641 crore accomplished in March 2020.
More importantly, immediately after witnessing net outflow in equity schemes for 8 straight months considering that July 2020, equity schemes have noticed a robust net inflow of Rs 9,115 crore in March 2021, whilst the net outflow in February 2021 was Rs 4,534.36 crore.
“This is heartening to see as it comes after a terrible 6 months earlier where outflows were very large,” mentioned Gopal Kavalireddi, Head of Research at FYERS.
Explaining the modify in the investment pattern, Kavalireddi mentioned, “With stock markets close to all-time highs and investors probably unsure of where to invest, have restarted their SIPs, ploughing the gains of the last one year. With buoyant stock markets, we can only hope that the positive trend in equity flows is not a one-month/year ending aberration but a return of investors to mutual funds and long-term investing.”
“Debt funds on the other hand saw an outflow of Rs 52,528 crore in comparison to an inflow of Rs 1,734.63 crore in the previous month, owing to advance tax payments and other year ending commitments. The AUM at the end of March stood at Rs 31.42 lakh crore,” he added.
Some MF market stakeholders, nonetheless, think that the enforcement of the rule on February 1, 2021 that mandates allotment of MF units at the NAV according to the date and time of realisation of fund could have some contribution in the robust SIP inflow figure of Rs 9,182 crore accomplished in March.
Mutual Fund Investment: You could not get MF units at preferred NAV even if applied just before reduce off time
This is for the reason that banks have been closed on February 27 (4th Saturday) and February 28 (Sunday). So, units have been allotted on March 1, 2021 against all the investment cash realised immediately after 3 pm on February 26, 2021.
As a outcome, investments created via cheques even on February 24 – February 25, 2021 could have reflected in the inflows of March 21, additional boosting the inflow figure to touch the highest ever SIP inflow of Rs 9,182 crore.