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After the rise in the stock market in 2022-23, small cap and mid cap schemes of mutual funds became the center of attraction for small investors. However, SEBI expressed concern about the high prices of these stocks in the second half of February, 2024 and after the market started turning bearish from February 19, these investors became cautious in the month of March. An outflow of Rs 94 crore was seen. However, according to the data released for April, the attractiveness of these shares remains intact among retail investors and this month an investment of Rs. An inflow of Rs 2,209 crore has been seen. A similar trend has been seen in midcap schemes also. In the month of March, Rs. An inflow of Rs 1,018 crore was seen, which increased to Rs 1,018 crore in April. 1,793 crores. In contrast, large-cap funds saw a decline in inflows. Which became stable at Rs 358 crore compared to Rs 2,128 crore last month.
The Indian mutual fund landscape was taken by a storm in April. Since, net equity mutual fund inflows fell from Rs 22,576 crore in March to Rs 18,888 crore in April. This has been revealed in the report of Association of Mutual Funds in India (AMFI). The current political environment of the country is being said to be the reason for this huge turmoil in the market. Hybrid funds, on the other hand, emerged as the standout performing category. There was a significant increase in investment in April to Rs 19,863 crore compared to Rs 5,584 crore in March. The surge reflects investors' preference for diversified investment options versus a mix of equity and debt offerings. However, fluctuations in the liquid fund and exchange traded fund (ETF) categories paint a mixed picture. Last month the inflow of liquid funds was Rs 1.58 lakh crore. Which had reduced to Rs 1.03 lakh crore in April. Which indicates a shift in investor preferences towards relatively safe avenues amid market uncertainties. Similarly, the fund inflow of ETF also decreased from Rs 10,560 crore to Rs 5,747 crore. Tax saving equity mutual funds commonly known as ELSS funds have witnessed a sharp decline in inflows. An inflow of Rs 1,789 crore in March turned into an outflow of Rs 144 crore in April. This unexpected decline suggests a re-evaluation of tax saving strategies by investors. Similarly, credit risk funds saw marginal outflows of Rs 359 crore in April compared to Rs 321 crore in March. The total inflow in the loan segment was Rs 1.90 lakh crore. Which shows a slight decrease from last month's outflow of Rs 1.98 crore. Despite the slight decline, the segment remained stable.
Investment in SIP crosses new peak of Rs 20,000 crore
Investments in Systematic Investment Plans (SIP) crossed the Rs 20,000 crore mark for the first time in April. Regarding this increase in SIP, experts say that the record increase in this segment shows that investors have high expectations from the mutual fund industry. They want to invest their savings in this sector and grow their wealth in the long term through SIP. However, net inflows into equity mutual funds declined 16.4 per cent sequentially to Rs 18,917.1 crore in April.