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Equity MFs Inflows Dip 44% in April as Volatility Bites

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The inflow of equity-oriented mutual funds (MF) schemes fell 44 per cent every month to Rs 15,890 crore in April, amid a spike due to inflationary fear.

“The lower quantum of net inflow from the previous month could be attributed to investors going slightly cautious with their investments given the ongoing challenges to the investment environment. This is evident from a comparatively lower quantum of funds mobilized in April than March,” said Himanshu Srivastava, associate director of research, Morningstar India.

The war between Russia and Ukraine with concern over the surging crude price and an uptick in domestic inflation. In the recent month, market performance has weighed, which results in poor performance of equity schemes.

Continuously, the foreign portfolio investors (FPIs) sell and raise high on, more aggressive rates by the US Fed going ahead, which leads to de-rating in several stocks.

The BSE Sensex Index lost 2.57 per cent, while BSE Midcap Index and BSE Smallcap Index have gained 1.29 per cent and 1.40 per cent, respectively, in April 2022.

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