edited by: Namit Singh Sengar
Last Update: January 11, 2023 at 6:40 pm
Equity schemes have seen an inflow of Rs 1.61 lakh crore last year as against Rs 96,700 crore in 2021.
Mutual Funds: Flows into equity-oriented schemes are expected to increase in 2022 due to greater awareness about equities and their potential to create wealth over the long term.
The Assets Under Management (AUM) of the mutual fund industry is expected to increase by 5.7% to total ₹39.88 lakh crore in 2022.
This was lower than the growth of about 22% or about ₹7 lakh crore in the asset base to ₹37.72 lakh crore in 2021.
The mutual fund industry is set to add Rs 2.2 lakh crore to its asset base in 2022, driven by a steady monthly increase in Systematic Investment Plan (SIP) inflows, according to data from the Association of Mutual Fund Industry (AMFI).
Some experts believe that the growth in the asset base in 2023 will be driven by economic growth and retail participation from young investors.
TS Ramakrishnan, Managing Director & CEO said, “While mutual fund industry AUM grew by 5.7%, retail AUM grew by ~20%. Retail participation has increased as a result of SIP penetration. Through digital marketing The industry has been able to reach out to a wider audience base, thereby ensuring the democratization of mutual funds.”
Flows into equity-oriented schemes are expected to increase in 2022 due to greater awareness about equities and their potential to create wealth over the long term.
“We believe SIP figures will continue to rise this year as well. There has been a change in the mindset of investors to view mutual funds as a long-term wealth creation tool, which will lead to an increase in industry AUM,” said Ramakrishnan.
“The maturity of the retail investor is the reason for the continuous inflow into equity. 2022 has been a volatile year. Radhika Gupta, MD & CEO, Edelweiss AMC said, “People have used the correction opportunities to average low and continue adding money.
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Whereas, the growth of the 42-player mutual fund space in 2021 was mainly fueled by a rally in the stock markets. The increase in the asset base in 2022 is mostly a result of improved SIP inflows, which touched ₹13,000 crore for the second time in a row in November.
Akhil Chaturvedi, CBO, Motilal Oswal Asset Management Company, said equity funds saw a jump in net inflows to 7.3k crore in December from 2.2k crore in November. This was led by increased inflows into the mid and small cap categories, which have started looking attractive in terms of valuations after the recent correction.
“We are also witnessing highest inflows into our midcap funds in line with the overall industry. SIPs continue to create new milestones with inflows of over 13 thousand crores for the third consecutive month. This highlights the strong domestic inflows that have helped negate the recent selling by FIIs,” Chaturvedi said.
In addition, the number of investors is estimated to increase by 20 million to 14.11 million during 2022. A total of 2.6 crore folios were added in 2021.
Equity schemes have seen an inflow of Rs 1.61 lakh crore last year as against Rs 96,700 crore in 2021.
The schemes have been witnessing consistent net inflows since March 2021 and before that, equity schemes saw outflows for eight straight months due to the Covid pandemic.
During the calendar year, SIP inflows averaged over ₹12,500 crore per month, helping investors stay in the stock market and benefit from rupee cost averaging. The steady inflows suggest resilience in domestic inflows, which have been a strong counterbalance to selling by foreign portfolio investors (FPIs).
In 2022, with positive inflows in equity schemes (₹1.61 lakh crore), index funds and ETFs (₹1.65 lakh crore) and negative inflows in debt schemes (₹2.5 lakh crore), the total net inflows across all mutual funds are ₹71,443 crore Was. Ten million).
(With PTI inputs)
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