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Quote on Equity Mutual Fund Inflow for April 2023 from Sriram BKR, Senior Investment Strategist at Geojit Financial Services

The latest data from the mutual fund industry shows that April 2023 witnessed net inflows of Rs. 1.21 lakh crore, the highest in the last three years. However, equity funds' net inflows took a hit, dropping to Rs. 5,275 crore, down by 67% from the three-month average flows, despite 31% flows from a sector/thematic NFO. The dip in net flows could be attributed to a sharp drop in gross purchases month-on-month at -34% and a steady rise in redemptions at 9% month-on-month. The rise in valuations could have made investors stay away from fresh investments or take off some money to take advantage of the rally. Debt funds had a net inflow of Rs. 1.05 lakh crore, Debt ex-liquid & overnight had inflows of 36377 crs, 5th most in 3 years, and hybrid funds saw net inflows of Rs. 3,317 crore. Also, the data for Apr'23 shows that investors preferred fixed income as a preferred choice of investment than equity oriented options.

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