Inflows into equity and equity-linked schemes in November fell sharply as investors booked profit, with the benchmark indices touching record highs. Data released by the Association of Mutual Funds in India (Amfi) on Monday showed that net inflows into these schemes fell to a 41-month low of Rs 1,311.64 crore compared with Rs 6,026.38 crore in the previous month — a decline of 78 per cent.

N.S. Venkatesh, CEO of Amfi, said: “We believe some of it has been contributed by profit booking as the indices hit record highs. Investors are now waiting in the sidelines to re-assess the situation.’’

The markets are likely to continue its uptrend based on expectations of more reforms from the government, he said. A pre-budget rally may also be on the cards.

During the month, the mutual fund industry saw its asset base surpassing the Rs 27-lakh-crore-mark following strong inflows in debt-oriented schemes, including banking and PSU funds, which have a heavy allocation to highest rated bonds.

The industry clocked an assets under management of Rs 27.04 lakh crore by the end of November compared with Rs 26.33 lakh crore in the previous month — a growth of 3 per cent.

Overall inflows stood at Rs 54,419 crore last month compared with Rs 1.33 lakh crore in October. Of this, Rs 51,000 crore came from debt-oriented schemes.

Among debt-oriented schemes, overnight funds (which invest in securities with a maturity of one day) received Rs 20,650 crore, the highest among the fixed-income segment last month.

Banking & PSU funds received Rs 7,230 crore, while Rs 6,938 crore was infused in liquid funds, with investments in cash assets such as treasury bills, certificates of deposit and commercial paper for a shorter horizon. “Goal-based, long term systematic investment plans from retail investors continue to grow steadily, with SIP assets at an all-time high at Rs 3.12 lakh crore,” Venkatesh said.