Inflows Into Equity Mutual Funds Rise For Third Straight Month In July
Inflows into equity mutual funds, including equity-linked schemes, rose for the third straight month even as the benchmark index posted its worst July in 17 years.
Net inflows rose 6 percent over the previous month to Rs 8,112.5 crore in July, according to data released by the Association of Mutual Funds in India.
“Despite difficult month and volatile market conditions, the overall sentiment towards debt, equity and hybrid mutual fund schemes has been positive, and equity SIP contributions are at all time high over last three years,” said NS Venkatesh, chief executive officer at AMFI. “This reflects continued investor trust on the Indian MF Industry.”
Radhika Gupta, CEO at Edelweiss Mutual Fund, said last month, there were a few big new fund offers, still Rs 6,000 crore, excluding new fund offers, is a good number. “Valuations are obviously getting better, with the risk premium in the mid and small cap space looking attractive. The SIP book has remained fairly consistent, which is another key positive.”
Contribution through systematic investment plans rose to its highest ever level of Rs 8,324 crore in July.
Overall, the mutual fund industry witnessed a total inflow of Rs 87,087.71 crore compared with an outflow of Rs 1.59 lakh crore in June.
Liquid or money market schemes contributed the most to the total inflows into mutual funds in July. Investors pumped in Rs 45,441 crore in the money market schemes, used by companies to park surplus cash for the short term, against an outflow of Rs 1.52 lakh crore in June.
“One thing that we must all notice is the way flows have come in across both debt and equity. We had some money coming into the money market schemes, equity large caps and to some extent in mid and small caps. So, it is heartening to see allocation of assets across the categories,” Swarup Mohanty, CEO of Mirae Asset Global Investments (India) Pvt. Ltd., told BloombergQuint.
The balanced funds category snapped its six-month streak of outflows, which was the longest in a decade. These funds witnessed an inflow of Rs 697.1 crore in July compared with an outflow of Rs 1,909.6 crore in June.
Assets Under Management
Total assets under management remained steady at Rs 25.81 lakh crore last month.
Total equity assets, however, dropped 1.7 percent over the previous month to Rs 7.06 lakh crore in July.
Watch the interaction with AMFI’s Venkatesh here: