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Amid the market downturn, stock market investors seem to have forgotten Warren Buffett’s mantra. This is because equity mutual fund inflows fell 14% to Rs 35,943 crore in November
Warren Buffett has advised investors to be greedy when others fear during market downturns. (AP File)
If one invest in the stock market, the investment mantras of world-famous investor Warren Buffett can be invaluable. Warren Buffett famously said that when the market falls, instead of succumbing to fear like others, one should become greedy.
Market downturns invariably present excellent investment opportunities. Simply put, one should invest in a falling market. However, it seems that amidst the current market decline, common investors have forgotten this mantra and have reduced their investments in mutual funds.
Equity mutual funds saw an inflow of Rs 35,943 crore in November, a decline of 14 per cent on a monthly basis. According to data released by the Association of Mutual Funds in India (AMFI) on Tuesday, despite the decline, this marks the 45th consecutive month of net inflow into equity-oriented funds.
According to Bhasha, the monthly contribution from Systematic Investment Plans (SIPs) remained relatively stable at Rs 25,320 crore last month, compared to Rs 25,323 crore in October.
Overall, the mutual fund industry witnessed an inflow of Rs 60,295 crore in November, a significant decrease from Rs 2.4 lakh crore in October. A primary reason for this decline is the sharp fall in inflows into bond-oriented mutual funds, which plummeted from Rs 1.57 lakh crore in October to Rs 12,915 crore in November.
Meanwhile, the industry’s Assets Under Management (AUM) rose to Rs 68.08 lakh crore last month, up from Rs 67.25 lakh crore in October. Data reveals that investments in equity-oriented schemes totalled Rs 35,943 crore in November, compared to Rs 41,887 crore in October.
Investment in large-cap mutual funds experienced a 26 per cent decrease, dropping to Rs 2,548 crore in November from Rs 3,452 crore in the preceding month. Conversely, mid-cap funds saw a 4.3 per cent monthly increase, reaching Rs 4,883 crore, while small-cap funds rose by 9 per cent to Rs 4,112 crore.
