Equity MF inflows slow, hit 10-month low in August: Amfi

Investment in equity funds fell to a 10-month low in August, but has remained positive territory for 18 consecutive months. Retail participation in the form of Systematic Investment Plans (SIPs) has been strong despite market volatility.

As per the data, the monthly SIP contribution in August was 12,693.45 crore, an all-time high.

Mutual Fund SIP On Assets (AUM) Under Management 6.39 lakh crore as a percentage of the total average AUM of a mutual fund ( 39.53 lakh crore) was over 16%, indicating healthy and disciplined investment by small investors.

Further, the number of SIP accounts stood at an all-time high of 5.71 crore in August, crossing a high of 5.61 crore in June.

In the fixed-income segment, open-ended debt schemes saw a net inflow of 49,164.29 crore during August.

As a result, the mutual fund industry’s net assets under management reached an all-time high 39.33 lakh crore in August, climbing 7% YoY.

Equity, or growth, categories, flexi-cap, mid-cap, small-cap, large and mid-cap and focused schemes emerged as the top five in net inflows.

In the hybrid category, except Arbitrage Fund, Dynamic Asset Allocation/Balance Advantage Fund, Balanced Hybrid and Aggressive Hybrid had positive flows in the remaining five schemes.

In the fixed income/or debt segment, liquid funds, ultra-short duration funds and money market funds emerged as the top three categories that saw positive inflows, apart from the rest nine categories.

The data also revealed that 20.06 lakh crore, as on August 31, Net AUM under retail equity schemes (Equity + Hybrid + Solution oriented) was at an all-time high, growing 17% year-on-year, while on average AUM 20.01 lakh crore under retail equity schemes rose to an all-time high and 20% in August.

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