In 2018-2019 Financial Year, more than Rs. 1.11 Lakh Crores have been invested in equity based mutual funds, whereas, in 2017-2018 Financial Year, Rs. 1.71 Lakh Crores were invested, which results in a 35% decline and 5th successive year of investments in equity based mutual funds, as per Association of Mutual Funds in India’s (AMFI) data.
The fact that the market was more volatile in 2018-19 due to tensions with Pakistan and various other factors, whereas, in 2017-18, the market was relatively more stable, is required to be considered for the reason of decline in net inflows in equity. Due to the volatility, there was a decline in fresh equity investments, which contributes to the decline. Despite the decline, the investment in equity has been more than investments in FII’s as per MFI Chief Executive Officer N S Venkatesh.
Net Inflows in these funds were Rs 1, 11,423 Crores in 2018-19, Rs 1, 71,069 Crores in the preceding fiscal, Rs 70,367 Crores in 2016-17, Rs 74,024 Crores in 2015-16 and Rs 71,029 Crores in 2014-15. Also, the SIP (Systematic Investment Plans) accounts grew by 51 Lakh to 2.62 Crores from 2.11 Crores in March 2018.