Equity MFs' inflow drops 43% to Rs 8,898 cr in July amid choppy markets

Equity MFs' inflow drops 43% to Rs 8,898 cr in July amid choppy markets
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New Delhi: Equity mutual funds attracted Rs 8,898 crore in July, a sharp decline of 43 per cent from the preceding month, amid volatile market conditions.

Although, this was the 17th straight month of positive inflow in equity schemes.

The net inflows in July were lower compared to the net inflow of Rs 15,495 crore seen in June, Rs 18,529 crore seen in May and Rs 15,890 crore in April, according to data released by Association of Mutual Funds in India (Amfi)on Monday.

Equity schemes have been witnessing net inflow since March 2021, highlighting the positive sentiment among investors. Prior to this, such schemes had consistently witnessed outflows for eight months from July 2020 to February 2021, losing Rs 46,791 crore.

All the equity-oriented categories received net inflows in July with the Small Cap Fund category being the biggest beneficiary with a net inflow of Rs 1,780 crore. This was followed by the Flexi Cap Fund fund that witnessed Rs 1,381 crore net infusion. Besides, Large Cap Fund, Large & Mid Cap Fund and Mid Cap Fund witnessed over Rs 1,000 crore net inflow each.

Apart from equity, debt mutual funds witnessed an inflow of Rs 4,930 crore last month after witnessing a net outflow of Rs 92,247 crore in June.

However, Gold Exchange Traded Funds (ETFs) experienced a net outflow of Rs 457 crore, which was in sharp contrast to a net infusion of Rs 135 crore seen last month.

Overall, the mutual fund industry registered a net inflow of Rs 23,605 crore during the month under review as compared to a net withdrawal of Rs 69,853 crore. This was mainly on account of higher levels of redemptions from debt mutual funds.

The inflow pushed the Assets Under Management (AUM) of the industry to Rs 37.75 lakh crore at the end of July from Rs 35.64 lakh crore at June-end.