Equity Mutual Fund Inflows Tumble In June
Indian two thousand and five hundered rupee notes arranged for photogaph. (Photographer: Dhiraj Singh/Bloomberg)

Equity Mutual Fund Inflows Tumble In June

Investments into equity mutual funds fell in June even as stock markets gained on optimism that the economy will pick up pace after curbs imposed to curtail the second Covid-19 wave were lifted.

Net inflows into equity and equity-linked schemes tumbled nearly 40% over the preceding month to Rs 5,988.2 crore in June, according to data released by the Association of Mutual Funds in India. Still, that’s the fourth straight month of inflows into the category.

India’s equity benchmarks S&P BSE Sensex and NSE Nifty 50 gained 1.05% and 0.89%, respectively, in June.

Category-Wise Trends

Large-, mid- and small-cap funds witnessed net inflows for the fourth straight month. While net inflows into mid-cap schemes rose, all other segments saw a decline.

AMFI started offering granular data since April 2019.

Contributions to systematic investment plans rose for the second straight month to Rs 9,155 crore in June.

Net Flows

All mutual fund schemes—debt or equity—saw a net inflow of Rs 15,320.3 crore in June, with average assets under management at Rs 34.1 lakh crore.

Liquid funds saw a net inflow of Rs 2,078.5 crore against an outflow of Rs 45,447.4 crore in May. Such schemes are used by companies to park short-term cash.

Overnight funds saw a net inflow of Rs 4,459.9 crore in June compared with an outflow of Rs 11,573 crore a month earlier.

Credit risk funds saw a net inflow for the second straight month in June. Before that, investors pulled out of such funds every month at least since April 2019, barring January and May.

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