Equity MF schemes register huge jump in net flows in August
Data from AMFI shows equity funds registered net inflows of Rs 20,245.26 crore in August, much higher than previous month’s Rs 7,625.96 crore
- Sep 11, 2023,
- Updated Sep 11, 2023 4:07 PM IST
At a time when the benchmark equity indices—S&P BSE Sensex and Nifty—are steadily moving towards their all-time highs, mutual fund investors seem to have stepped on the accelerator in terms of equity scheme investments.
Data from the Association of Mutual Funds in India (AMFI) shows that equity schemes across categories saw cumulative net inflows of Rs 20,245.26 crore in August, which is significantly higher than the previous month’s net flows of Rs 7,625.96 crore.
In terms of the categories of equity schemes, sectoral/thematic funds saw the highest inflow at nearly Rs 4,806 crore followed by small-cap funds at Rs 4,264.82 crore.
Incidentally, the last couple of months saw Small Cap funds registering the highest quantum of inflows within the basket of equity schemes.
Meanwhile, the categories of Flexi Cap funds, Mid Cap funds and Large & Mid Cap funds each saw net inflows in excess of Rs 2,000 crore in August. Multi-cap funds registered an inflow of Rs 3,422 crore in August.
While sharing the mutual fund flow data, AMFI Chief Executive N S Venkatesh said that August proved to be a good month for mutual funds as equity schemes showed great resilience on the back of positive expectations related to economic and corporate growth.
“If we look at the way the economy is doing, government has taken various steps for the economy to perform well. Economic growth is expected to be much better and with G20 leadership exercise happening, India is on a high pedestal. Investors believe that economic growth will be higher and corporate growth & profitability will be better. We believe that the trend of positive flows in equity schemes will continue,” he said while speaking to the media.
Systematic Investment Plans or SIPs continued their stellar performance by hitting yet another record high in terms of cumulative monthly flows. In August, SIP flows were pegged at Rs 15,813.54 crore, higher than previous month’s Rs 15,245 crore.
“The record SIP contribution of Rs 15,813.54 crore is a testimony of the Indian Investors long term approach to building wealth by investing through small ticket sized SIPs,” said Venkatesh.
On the debt side, August saw the category register net outflow of Rs 25,872.50 crore primarily on account of outflows amounting to Rs 26823.68 crore in liquid funds. This is in sharp contrast to the trend seen in July when debt fund category witnessed a net inflow of ₹61,440 crore.
Meanwhile, the overall assets under management (AUM) of the mutual fund industry rose to Rs 46.64 lakh crore from the previous month’s Rs 46.38 lakh crore, as per AMFI data.
“The industry continues to work towards the aim of achieving Rs 100 trillion in AUM over the next few years and we are almost halfway there already,” said Venkatesh.
Also read: Old Bridge Capital Management receives Sebi approval for mutual fund business
At a time when the benchmark equity indices—S&P BSE Sensex and Nifty—are steadily moving towards their all-time highs, mutual fund investors seem to have stepped on the accelerator in terms of equity scheme investments.
Data from the Association of Mutual Funds in India (AMFI) shows that equity schemes across categories saw cumulative net inflows of Rs 20,245.26 crore in August, which is significantly higher than the previous month’s net flows of Rs 7,625.96 crore.
In terms of the categories of equity schemes, sectoral/thematic funds saw the highest inflow at nearly Rs 4,806 crore followed by small-cap funds at Rs 4,264.82 crore.
Incidentally, the last couple of months saw Small Cap funds registering the highest quantum of inflows within the basket of equity schemes.
Meanwhile, the categories of Flexi Cap funds, Mid Cap funds and Large & Mid Cap funds each saw net inflows in excess of Rs 2,000 crore in August. Multi-cap funds registered an inflow of Rs 3,422 crore in August.
While sharing the mutual fund flow data, AMFI Chief Executive N S Venkatesh said that August proved to be a good month for mutual funds as equity schemes showed great resilience on the back of positive expectations related to economic and corporate growth.
“If we look at the way the economy is doing, government has taken various steps for the economy to perform well. Economic growth is expected to be much better and with G20 leadership exercise happening, India is on a high pedestal. Investors believe that economic growth will be higher and corporate growth & profitability will be better. We believe that the trend of positive flows in equity schemes will continue,” he said while speaking to the media.
Systematic Investment Plans or SIPs continued their stellar performance by hitting yet another record high in terms of cumulative monthly flows. In August, SIP flows were pegged at Rs 15,813.54 crore, higher than previous month’s Rs 15,245 crore.
“The record SIP contribution of Rs 15,813.54 crore is a testimony of the Indian Investors long term approach to building wealth by investing through small ticket sized SIPs,” said Venkatesh.
On the debt side, August saw the category register net outflow of Rs 25,872.50 crore primarily on account of outflows amounting to Rs 26823.68 crore in liquid funds. This is in sharp contrast to the trend seen in July when debt fund category witnessed a net inflow of ₹61,440 crore.
Meanwhile, the overall assets under management (AUM) of the mutual fund industry rose to Rs 46.64 lakh crore from the previous month’s Rs 46.38 lakh crore, as per AMFI data.
“The industry continues to work towards the aim of achieving Rs 100 trillion in AUM over the next few years and we are almost halfway there already,” said Venkatesh.
Also read: Old Bridge Capital Management receives Sebi approval for mutual fund business