The latest data put out by the Association of Mutual Funds in India (AMFI) shows that small caps inflows dipped in the month of March, while the inflows towards large-cap funds were highest since June 2023. The total inflows in March in all categories stood at Rs 22,633.15 crore against Rs 26,865.78 crore in February.
As per the data, the total inflows in FY24 in the equity category stood at Rs 1.84 lakh crore.
For small caps, it was Rs 94 crore against net inflows of Rs 2,922.45 crore in February, large & midcap funds managed to gain investor interest with the second highest inflows of Rs 3,215.58 crore. Investment in mid-cap funds dropped 44 per cent to Rs 1,018 crore against investments of Rs 1,808.18 crore in February.
Except for small caps, both the categories, midcap and large cap, received net inflows in March. Flexicap funds stood third with Rs 2,738.11 crore inflows in March. Hybrid fund inflows also experienced a significant decrease, totaling Rs 5,584 crore compared to Rs 18,105.08 crore in the preceding month.
Small cap net outflows: Rs 94 crore during March
Mid-cap funds net inflows: Rs 1,018 crore
Large-cap funds net inflows: Rs 2,128 crore in March.
Overall, the net equity inflow stood at Rs 22,691 crore, down from Rs 26,703.06 crore in the previous month.
In the month of March, exchange-traded fund (ETF) inflows rose to Rs 10,560 crore from Rs 6,461.67 crore in February. Credit risk funds saw outflow of Rs 321 crore compared to Rs 366 crore in the previous month.
The funds in the debt category saw the largest outflows in March of around Rs 1.98 lakh crore. The inflows in the month of February was Rs 63,808.82 crore. Under the debt categories, all categories witnessed exits except for long duration funds, banking & PSU, and Gilt Fund with 10 year constant duration funds.
Under debt funds, long duration funds saw inflows of Rs 772.29 crore, banking & PSU funds got inflows of Rs 231.68 crore followed by Gilt Fund with 10-year constant duration that saw inflows of Rs 58.04 crore.
On a whole, the total assets under management (AUM) of mutual funds in India dipped 2% and was about Rs 53.12 lakh crore in March, as against Rs 54.24 lakh crore in February.
In February, AMFI wrote to mutual fund houses to take measures to protect the interest of investors of small and mid-cap schemes, which have seen heavy inflows in the last one year. Small and mid-cap funds have seen a surge in inflows from investors led by higher-than-expected performance of companies in these segments.
“In the context of froth building up in the small and mid-cap segments of the market and the continuing flows in the small and mid-cap schemes of mutual funds, trustees, in consultation with the Unitholder Protection Committee of the AMCs (Asset Management Companies), shall ensure that a policy is put in place to protect the interest of all investors,” AMFI wrote to its members in a letter written on February 27.
Between August 2023 and January 2024, small-cap funds have seen net inflows of Rs 22,252.14 crore while mid-cap funds have witnessed inflows of Rs 13,042.1 crore, according to AMFI data. On the other hand, large cap funds have seen net inflows of around Rs 1,577.04 crore in the same period.
-by Business Today
Mutual Funds: KYC with bank statement, utility bill invalid. See valid documents that can be used
MF investors need to fill in a KYC form and furnish valid proof of identity (POI) and proof of address (POA) documents, which are subsequently registered with a KYC Registration Agency (KRA) by the mutual fund house or a Sebi-registered entity.
Market regulator Securities and Exchange Board of India (Sebi) has made some changes in in the Know Your Client (KYC) documentation. From April 1, that is the new finanical year, the Sebi has limited the range of documents accepted for proof of identity or address, which will impact both new and existing investors.
Mutual fund investors have to complete KYC formalities before initiating their investments. Generally, the investors need to fill in a KYC form and furnish valid proof of identity (POI) and proof of address (POA) documents, which are subsequently registered with a KYC Registration Agency (KRA) by the mutual fund house or a Sebi-registered entity.
Accepted proof of identity documents that investors need to furnish:
— Aadhaar
— Passport
— Driving licence
— Voter ID card
— NREGA job card
— Any other document sanctioned by the Centre in agreement with the regulator.
Documents that won’t be accepted
Bank statements or utility bills will no longer be accepted for KYC completion. Mutual Fund Distributors were informed of this policy change through emails from registrar and transfer agents like CAMS and KFin Technologies in early March.
KYC procedure
Investors can complete the KYC formalities online by using the Aadhaar-based e-KYC system. Investors can log on to the mutual fund website, or its registrar or third-party distributor websites that allow investments in mutual funds to get this done.
A validation of investor credentials is done by sending an OTP on the mobile number registered with Aadhaar.
Besides, the investor should have a smartphobe that can access the camera, location and microphone.
The investor must submit a self-attested copy of their PAN card and a signature image on plain paper to finalise the process. After completing the KYC, they can begin investing in mutual funds.
-by Business Today
