Equity Mutual Fund Inflows Surge More Than Threefold In July
Investments into equity mutual funds surged more than threefold in July amid optimism about the economy as restrictions eased after a deadlier second wave.
Net inflows into equity and equity-linked schemes rose nearly 277% over the preceding month to Rs 22,583.5 crore in July, according to data released by the Association of Mutual Funds in India. This marks the fifth straight month of inflows into the category and is the highest since at least April 2018 when AMFI revised reporting format.
Investors, according to the mutual fund lobby, have taken a “fancy for equity schemes”. New NFOs also supported flows into growth/equity-oriented schemes, it said in a conference call, adding that liquidity remains a tailwind for Indian equities.
“[We] expect equity schemes to clock robust inflows, since Indian markets continue to remain attractive,” AMFI said.
Large-, mid- and small-cap funds witnessed net inflows for the fifth straight month. While net inflows into multi- and mid-cap schemes fell, the other segments saw a rise.
AMFI started offering granular data since April 2019.
Contributions to systematic investment plans rose for the third straight month to an all-time high in July. More than 23 lakh SIP accounts opened during the month, also a record, AMFI said on a conference call.
All mutual fund schemes—debt or equity—saw a net inflow of Rs 1.14 lakh crore in July, with average assets under management at Rs 35.1 lakh crore.
Liquid funds saw a net inflow of Rs 31,739.8 crore in July against an inflow of Rs 2,078.5 crore in June. Such schemes are used by companies to park short-term cash.
Overnight funds saw a net inflow of Rs 5,932.6 crore compared with an inflow of Rs 4,459.9 crore in June.
Credit-risk funds saw a net inflow for the third straight month in July. Before that, investors pulled out of such funds every month at least since April 2019, barring January, May and June.