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Below the Perspective on AMFI Data by Mr. Akhil Chaturvedi, Chief Business Officer, Motilal Oswal Asset Managementsset Management Company

Equity schemes experienced a decline in inflows of 15.8%, reaching Rs.22,500 crores in Mar’24. Large caps demonstrated positive contributions this month, reversing the net outflows experience over the year. Multi-cap and Large & midcap category funds witnessed an inflow of Rs.5000Cr collectively. The shift in trend is in line with valuation differentials among large v/s mid and small caps, suggesting that large caps/flexi cap oriented schemes may attract higher flows in the coming months. In the Hybrid category, MAF observed inflows of Rs.2681 crores, marking a decline from the Rs.4,043cr seen in the previous month. Equity-linked savings scheme (ELSS) funds inflows grew nearly 5 times to 1,789.1 crore in March considering tax savings investment during the end of the financial year.

The total assets under management (AUM) of mutual funds decreased by 2%, amounting to Rs.53.12 lakh crore, compared to Rs.54.24 lakh crore in February. We observed a decline in equity inflows in March, primarily driven by the small and midcap category. This could be attributed to investors seeking relative valuation comfort, leading them to reallocate towards these segments.

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