Equity mutual fund inflows drop 9% to ₹37,113cr in July
Equity mutual fund (MF) inflows experienced a 9% decrease in July, dropping to ₹37,113 crore from ₹40,608 crore in June. This decline was primarily due to reduced investments in large-cap and mid-cap funds. The data was released by the Association of Mutual Funds of India (AMFI) today. Sectoral/thematic funds also saw a decrease in inflows by 18%, amounting to ₹18,386 crore.
Multicap funds witness decline
Despite this dip in sectoral/thematic funds, nine new fund offers (NFOs) in this category managed to attract a total of ₹12,974 crore in July. Multicap funds, which invest a minimum of 25% each in large-cap, mid-cap and small-cap shares, received the second-highest inflows of ₹7,084 crore during the same period.
Large-cap and mid-cap funds face significant slump
Large-cap funds experienced a significant slump of 31% to ₹670.12 crore last month. Mid-cap funds recorded the largest month-on-month decline in percentage terms, dropping by around 35% to ₹1,644 crore from ₹2,527 crore in June. Despite these declines, small-cap funds managed to attract net inflows of ₹2,109.20 crore and mid-cap funds saw fresh investments of ₹1,644.22 crore during July.
ELSS and focused funds experience outflows
All categories barring ELSS and focused funds continued to receive inflows in July. Both ELSS and focused funds have experienced outflows for four consecutive months. In July, ELSS funds saw an outflow of ₹637 crore, while the focused funds experienced an outflow of ₹620 crore. This trend indicates a shift in investor preference away from these specific fund categories.
Debt mutual funds see surge in inflows
In contrast to equity MFs, debt mutual funds saw a surge in inflows of ₹1.19 lakh crore last month, reversing the outflow of ₹1.07 lakh crore recorded in June. The highest inflows were seen in liquid funds, which attracted ₹70,060 crore in comparison to an outflow of ₹80,354 crore in June. Short-term liquid funds category saw net inflows of ₹70,060.88 crore, while money market funds witnessed fresh investments of ₹28,738.03 crore during July.
Mutual fund industry's net AUM hits record high
Open-ended mutual funds saw net inflows of ₹1,89,141.39 crore during July. The net assets under management (AUM) of the mutual fund industry rose to a record high of ₹64,96,653.14 lakh crore. This marks the first time the industry's net AUM has surpassed the ₹60 lakh crore level since June. BSE benchmark Sensex gained 3.43%, while NSE Nifty was up by 3.92% during July 2024, reflecting a positive trend in the broader market despite fluctuations in specific fund categories.
