Interesting mutual funds via SIP route have raked in a massive Rs. 9182 crore investment in the March month of the ongoing year, the highest in a year's time. Also, there has a net inflow in the equity mutual funds in the March month after eight-consecutive months of outflow. Nonetheless, debt mutual fund investors offloaded their positions in the instrument of an amount equivalent to Rs. 52528 crore.
And the surge by a huge quantum in the investment is being owed to the change in NAV rules that became applicable from February 1, 2021.
New MF unit allotment NAV rules
Some MF industry experts are of the view that the robust inflows in equity SIPs by and large are because of the new NAV rule that enforces the allotment of the mutual fund units at the NAV basis the date and timing of realization of funds.
So, elaborating on this banks were closed on the last days of February and so for all the investments realized after 3 pm on February 26, 2021, mutual funds were allotted on March 1. And in a case even in case the payment towards mutual fund were made via cheque on February 24-February 25, inflows were seen in the March month.
Now, what is being hoped for is that the huge equity SIP in the March month is simply the comeback of mutual fund investors and that too for long term.