Net inflows into domestic equity mutual funds more than doubled month-on-month from ₹5,122 crore in February to ₹11,756 crore in March, the highest since October 2018. Year-on-year, net inflows into equity MFs registered a sharp rise of 76.59%, compared to ₹6,657 crore in March 2018.
The month also witnessed the Indian markets rising nearly 8% to outperform its global peers, on expectations of a stable government at the centre after the April-May general elections.
However, despite the rise in equity mutual fund inflow, overall domestic institutional investors’ investment in Indian shares was not positive. DIIs, which include mutual funds and insurance companies, were net sellers of Indian shares worth ₹13,930.3 crore in March.
Redemption pressures from mutual fund equity schemes also increased to ₹15,890 crore from a month ago. In February, redemption from such schemes was at ₹10,334 crore.
The total amount collected through systematic investment plans in March was ₹8,055.35 crore, against ₹8,094 crore in February. Three lakh fresh SIP accounts were opened in the month.