Equity Mutual Funds See Rs 38,239 Crore Inflows In August; Check Details Here

In August, large-cap funds experienced a substantial rise in inflows, reaching Rs 2,636 crore, a remarkable 293 per cent increase from Rs 670 crore in July.

Flexi-cap funds stood out among equity categories, capturing significant investor interest with Rs 3,513 crore in inflows, a notable rise from Rs 2,081 crore in July

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The Association of Mutual Funds in India reported a modest 3 per cent increase in equity mutual fund inflows in August, reaching Rs 38,239 crore compared to Rs 37,113 crore in July. However, overall net inflows for mutual funds saw a significant decline of 43 per cent, dropping to Rs 1.08 crore from Rs 1.89 lakh crore in the previous month.

Debt funds saw the largest outflows, with inflows decreasing 62 per cent to Rs 45,169 crore from Rs 1.19 lakh crore in the previous month.

Meanwhile, Systematic Investment Plan (SIP) contributions reached a record high of Rs 23,547 crore in August, surpassing July’s total of Rs 23,332 crore. This is the second consecutive month in which SIP contributions have exceeded s 23,000 crore.

In August, equity mutual fund schemes recorded their second-largest inflows of the year at Rs 38,239 crore. This represents a 3 per cent increase from the previous month despite increased market volatility during this time. This trend reflects a continued positive sentiment among investors toward equity investments.

In August, large-cap funds experienced a substantial rise in inflows, reaching Rs 2,636 crore, a remarkable 293 per cent increase from Rs 670 crore in July.

“Pure active equity schemes have crossed 30 lakh crores in AUM across the industry during the month of August 2024. Equity flows for the month of August 2024 has been a mix of SIP flows, NFOs and existing schemes. Thematic Funds still top the charts, while other categories like Large cap Fund, Multi cap Fund, Large & Midcap Fund and Midcap Fund have also seen good net flows. On the Fixed Income side, flows have been predominantly on shorter end of curve like Liquid, Overnight and Money Market Funds, while some of the large treasuries seem to have taken positions in Gilt and Duration products in anticipation of interest rate cut. Hybrid Funds as well as Passive strategies have also seen good flows during the month. Overall strong flows and momentum continues across product categories for mutual funds in the month of August 2024,” said Madhu Nair, Chief Executive Officer at Union Mutual Fund.

Mid-cap funds attracted Rs 3,054 crore in inflows, up from Rs 1,644 crore the previous month. Small-cap funds saw a slight decline, with inflows at Rs 3,209 crore compared to Rs 4,171 crore in July. Multi-cap funds also grew, drawing Rs 2,475 crore in August, an increase from Rs 1,703 crore in July.

Flexi-cap funds stood out among equity categories, capturing significant investor interest with Rs 3,513 crore in inflows, a notable rise from Rs 2,081 crore in July.

Sectoral and thematic funds, focusing on specific sectors or investment themes, continued to capture significant investor interest, drawing in Rs 18,117 crore in inflows. These funds provide diversification and appeal to investors seeking to capitalise on particular trends or industries.

“Over 5 crore unique folios indicate the growing penetration of mutual funds while 20 crore investor folios indicate the increase in wallet share and preference for mutual funds as a saving vehicle and tool for wealth creation. Fund of Funds seem to be evoking interest post the taxation changes with good positive flows after a long period of time,” Nair added.