Despite increased volatility brought on by a number of macroeconomic reasons, geopolitical events, and the outcome of the US election, equity mutual funds saw an inflow of Rs 35,943 crore in November, representing a 14% month-over-month decline.

However, according to data issued Tuesday by the Association of Mutual Funds in India (AMFI), it was the 45th consecutive month of net inflows into equity-oriented funds, indicating the growing popularity of mutual funds among investors.

"A number of macroeconomic variables, geopolitical developments, and the outcome of the US election contributed to the increased volatility. This led to a decrease in lump sum flows, including flattish SIP numbers for November 2024, as investors chose to take a wait-and-watch strategy when allocating larger sums, according to Akhil Chaturvedi, CBO, Motilal Oswal AMC.

In the month under review, the mutual fund industry received an inflow of Rs 60,295 crore, compared to Rs 2.4 trillion in October. The industry's net assets under management increased from Rs 67.25 trillion in October to Rs 68.08 trillion last month, notwithstanding the decrease.

Compared to the record inflow of Rs 41,887 crore in October, equity-oriented schemes had an inflow of Rs 35,943 crore in November, according to the data. With the largest net inflow of Rs 7,658 crore during the reviewed month, the sectoral theme of the equity schemes drew the most investors. Nevertheless, the segment's flow was lower than that of Rs 13,255 crore in September and Rs 12,279 crore in October.

While small-cap funds saw an increase from Rs 3,772 crore to Rs 4,112 crore during the same period, large-cap fund inflows decreased from Rs 3,452 crore in October to Rs 2,548 crore in November. While NFO activity slowed last month, there has been a trend away from low-risk options like large-cap and hybrid funds and toward higher-risk options like small-cap funds.