Equity Mutual Fund Inflows Drop 42.5% In July: AMFI Data
Net investments into equity and equity-linked schemes slumped 42.5% over the previous month to Rs 8,898.2 crore in July: AMFI data
Inflows into equity mutual funds fell for the second straight month as a volatility in global crude prices, persisting geopolitical issues, soaring inflation and foreign selloff continue to impact investor sentiment.
Net investments into equity and equity-linked schemes slumped 42.5% over the previous month to Rs 8,898.2 crore in July, according to data released by the Association of Mutual Funds in India. Still, that’s the seventeenth straight month of investments into such stock plans.
Indian equity benchmarks, however, gained after three months. The S&P BSE Sensex and the NSE Nifty 50 rallied nearly 9% in July.
SIP Contribution
Monthly contributions into systematic investment plans declined by Rs 136 crore over June. This was the second month of decline, but the investments stayed above Rs 12,000 crore.
The numbers this month are “reasonably okay”, according to NS Venkatesh, chief executive officer at AMFI. “Despite lots of volatility seen in July, there’s an upward trend as AUM rose by 6%.”
Venkatesh said SIP contribution would remain in the Rs 12,000-13,000 crore range for this year. “Despite rate hikes, we expect markets to do well. Expect to touch Rs 13,000 crore again this year.”
Category-Wise Trends
All segments witnessed inflows in July.
Multi caps witnessed the least investments among all categories, while small caps saw the most.
AMFI started reporting granular data since April 2019.
Debt Funds
Investors pulled out of liquid funds for the second month in a row. Such schemes are used by companies to park short-term cash.
Credit risk funds witnessed outflows for the eighth straight month in July.
Net Flows
All mutual fund schemes, debt and equity, saw inflows, led by mid, small, large, multi cap and overnight funds.
Money market funds saw inflows worth Rs 2,638 crore in July against an outflow of Rs 8,126.1 crore in June.
The average assets under management stood at Rs 37.74 lakh crore in July versus Rs 36.98 lakh crore in June. Net AUM rose to Rs 37.76 lakh crore from Rs 35.64 lakh crore in the previous month.