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Mutual Funds Double Equity Buying in November as SIP Inflows Hit New High

India’s mutual fund industry displayed remarkable conviction in November, sharply increasing equity purchases despite global uncertainty and ongoing FII withdrawals. As per SEBI data, mutual funds pumped Rs 43,465 crore into equities—more than double the Rs 20,718 crore invested in October—signalling strong domestic optimism and rising retail participation.

Except for two trading sessions where fund houses collectively sold Rs 2,473 crore, mutual funds remained consistent buyers throughout the month, lending crucial support to benchmark indices and market sentiment.

Key Highlights: What Drove the Upsurge?

1. Massive Equity Buying by MFs

  • Net equity investments rose to Rs 43,465 crore in November.

  • Persistent buying helped absorb selling pressure from FIIs and supported index gains.

2. Debt Funds Witness Sharp Outflows

While equity flows surged, debt categories saw significant withdrawals:

  • Rs 72,201 crore exited debt funds in November (vs. Rs 12,771 crore in October).

  • This shift reflects tactical reallocation amid changing interest‑rate expectations and liquidity conditions.

3. SIP Momentum at Record Highs

Investor discipline remains a core market driver:

  • SIP inflows hit an all‑time high of Rs 29,529 crore in October.

  • Steady month‑on‑month rise showcases growing retail maturity and long‑term market confidence.

4. Balanced Investor Behaviour Emerging

Experts observe:

  • Strong conviction in equities, supported by earnings visibility.

  • Growing diversification into debt schemes and gold amid global uncertainties.

  • A resilient and maturing investor base that avoids emotional decision-making even in volatile phases.

What This Means for Markets

  • Domestic institutions continue to counterbalance foreign outflows.

  • Consistent SIP flows ensure a cushion for markets during bouts of volatility.

  • Mutual funds remain a strong stabilising force, driving India’s structural financial‑market growth story.

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