Equity mutual fund inflows down 43% to ₹8,898 crore in July: Amfi

Equity mutual funds posted positive net inflows for the 17th consecutive month in July, but inflows have been declining for the past three months, according to data released by the Association of Mutual Funds in India (Amfi) on Monday.

Net inflows with debt and equity segment were positive: 28,098.89 crore, as compared to net outflow 69,853 crore in June.

The data also shows that the number of Systematic Investment Plan (SIP) accounts stood at 5.61 crore in July, while the monthly SIP contribution remained strong. 12,140 crores last month.

The assets under management (AUM), under SIP, were at the end of July 6.09 lakh crores, 17.42 lakh new SIPs were registered during the month.

Amfi Chief Executive NS Venkatesh said, “Continued retail investor interest, as reflected in all-time SIP AUM, is crossing 6 lakh crore milestone for the first time, and also continued monthly SIP contribution 12,000 crore, strengthens mutual funds as a preferred investment avenue. With the exception of hybrid funds, almost all categories of positive inflows are in a good position as the economic recovery will pick up in the next few quarters.

Meanwhile, A.T. 37.74 trillion, the net assets under management (AUM) of the Indian mutual fund industry as on July 31 registered a 7% annual growth.

In the equity or growth category, flexi-cap, large-cap and large and mid-cap schemes emerged as the top three in net inflows. In the hybrid category, there was positive inflows in Dynamic Asset Allocation, Balanced Hybrid and Aggressive Hybrid, Balanced Advantage Fund and Multi-Asset Allocation Fund.

In the fixed income or debt category, overnight funds, ultra short duration funds and money market funds, long duration funds and gilt funds with a continuous tenor of 10 years saw positive inflows. Solution-oriented schemes such as retirement and children’s savings funds and indices, funds of funds (FOFs) and exchange traded funds (ETFs) also saw positive inflows in the last month.

As of July, the net inflow to income/debt schemes was 4,930.08 crore; stood for those in growth or equity oriented schemes 8,898.25 crore; for solution oriented plans 110.92 crore; for index funds 6,779.23 crore; For other ETFs 7,635.03 crore, and for FOF investing abroad, the net inflow was 313.05 crores.

The data also shows that the number of mutual fund folios grew 29% year-on-year to 13.55 crore as on July 31, from 10.54 crore last year. Folio count grew 1% month-on-month from 13.46 crores.

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