Debt funds register outflow of over ₹75,000 crore in December; total AUM crosses a milestone

• The Assets Under Management (AUM) stood at ₹50.78 lakh crore at the end of December.
• Inflows into equity mutual funds totalled ₹16,997 crore in December, up from ₹15,563 crore in November.
• SIP inflows in December steady at ₹17,610 crore, compared to ₹17,073 crore in November.

With the bulls dominating the equity market, debt funds registered a substantial outflow of ₹75,560 crore In December, up from ₹4,707 crore in November, according to the data by Association of Mutual Funds in India(AMFI). Debt fund outflows had reached ₹1.01 lakh crore in September driven by an outflow in liquid mutual funds. After two consecutive months of net outflow, debt funds had seen an inflow of ₹42,634 crore in October.

On the other hand, inflows into equity mutual funds totalled ₹16,997 crore in December, up from ₹15,563 crore in November, clearly showing that investors are open to taking more risks.

This was led by multi-cap funds which saw an inflow of ₹1,851 crore. Small and mid-caps showed strong inflows too at ₹3,857 and ₹1,393 crore, continuing their good run. However, large cap funds recorded an outflow of ₹280 crore, down from an inflow of ₹306 crore in November.
Says G. Pradeepkumar, CEO, Union Asset Management Company Pvt, “The net flows into equity funds have increased in December indicating sustained investor interest in equity mutual funds. SIP numbers also remained robust at more than ₹17,000 crores for the second consecutive month. With the expectations of high economic growth and political continuity, investors appear to be becoming increasingly confident about the prospects of Indian equity market.”


Equity mutual fund inflows in 2023

Month	Inflow into equity funds
January-23	₹12,546 crore
February-23	₹15,685 crore
March-23	₹20,534 crore
April-23	₹6480 crore
May-23	₹2,906 crore
June-23	₹8,637 crore
July-23	₹7,505 crore
August-23	₹20,133 crore
September-23	₹14,091 crore
October-23	₹19,932 crore
November-23	₹15,536 crore
December-23	₹16.997.09

When the markets perform positively, investors often display a greater inclination towards risk-taking. Buoyed by optimism and perceived opportunities for higher returns, they may venture into riskier investments, seeking to capitalise on the market's momentum.

SIP inflows in December stood at ₹17,610 crore, compared to ₹17,073 crore in November, crossing ₹17,000 crore in two consecutive months.

The overall Assets Under Management (AUM) hit a milestone crossing the ₹50 lakh crore mark for the first time in December (₹50.78 lakh crore). The reading has more than doubled in the past five years. The equity AMC stood at ₹21.8 lakh crore compared to ₹20.3 lakh crore in November.

2023 was the year when retail investors came of age. During the first nine months of 2023, there was an inflow of ₹124,053 crore into equity mutual funds, signalling a strong confidence among domestic investors in the potential of the equity market.