The latest monthly data released by the industry body Association of Mutual Funds in India (AMFI) for the month of December 2021 was very encouraging from an equity mutual fund perspective. According to AMFI monthly data, inflows of equity mutual funds have more than doubled to ₹325,077 crores in December 2021 compared to ₹11,615 crores witnessed in the month of November 2021 and against an outflow of 10,147 crores in December 2020. The net inflows registered in December 2021 in equity MF were the highest since April 2018. Even investments through the SIP route in the month of December 2021 were at ₹11,305 crore, which seems to be the highest ever figure.
Good inflows, along with a healthy surge in equity markets, has led to an increase in the share of equity schemes in the overall AUM of domestic mutual funds. It has increased from 31 percent at the start of the year to 36 percent by the end of the year 2021. For the year 2021, the total increase in AUM of equity MF has been ₹4.4 lakh crore, out of which around ₹1 lakh crore has come from inflows and the rest from mark-to-market gains. At the end of December 2021, equity-oriented schemes derived 88 percent of their assets from individual investors (Retail + HNI).
This shows that retail investors are increasingly getting attracted towards mutual funds for their investment needs and for achieving their financial goals. Mutual funds have become an integral part of retail investors' portfolios with investors assigning different SIPs to different goals. One of the reasons for such a recent surge in the interest of the investors are the better returns provided by equity mutual funds in the last few years.
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