Equity mutual fund inflows saw a month-on-month increase of 18.8% in inflows to Rs 29,329 crore in August as compared to Rs 24,697 crore in July, according to (Association of Mutual Funds in India) AMFI Data. Smallcap funds continue to be the top-performing equity class, and midcap funds had a nice month.
Key Highlights
- Equity mutual fund inflows rose nearly 19% in August, driven by sustained investor interest in smallcap and midcap funds.
- The AMFI data revealed that smallcap funds have received Rs 7,973 crore and midcap funds have collected Rs 6,989 crore during August.
Smallcap funds picked up Rs 7,973 crore in the month of August, while in July, the figure was Rs 7,768 crore. Midcap funds saw inflows of Rs 6,989 crore which is nearly 13% higher than inflows seen during July (Rs 6,192 crore).
Investors also had an increased interest in flexi-cap funds as Rs 5,059 crore was invested in the fund in July, against Rs 4,709 crore in July last year. Multi-cap funds gained Rs 3,733 crore and large & mid-cap funds got Rs 3,873 crore in August.
But largecap funds saw outflows continue. The category had an outflow of Rs 1,147 crore in August, which was less than the Rs 1,322 crore outflow in July.
ELSS funds also got impacted, with Rs 1,078 crore being deducted from them in comparison with July, when Rs 959 crore was deducted. The inflows in focused funds increased 55% from a month earlier to Rs 995 crore.
Debt Funds Reverse July Inflow Trend
Debt mutual funds had made a Rs 1.87 lakh crore net inflow in July, but recorded a net outflow of Rs 8,127 crore in August.
Liquid funds received Rs 19,934 crore and money market funds witnessed inflows of Rs 11,734 crore in August. For the first time the AMFI data also revealed information on debt-oriented sectoral funds, which attracted Rs 583 crore.
Overnight funds reported the highest outflow of Rs 30,654 crore followed by the short duration funds, which saw an outflow of about Rs 4,256 crore.
Hybrid Fund Inflows Fall 13%
Hybrid funds are now taking Rs 10,045 crore in August, which is a drop from Rs 11,490 crore in July, reflecting a decrease of about 13% MoM.
The highest inflow in hybrid funds included was Rs 3,789 crore in the case of arbitrage funds, while multi-asset allocation funds had the next highest inflow of Rs 3,670 crore.
Equity savings funds saw an outflow of Rs 246 crore, dynamic asset allocation and balanced funds witnessed Rs 227 crore outflows. Conservative hybrid funds saw a withdrawal of Rs 99 crore.
ETF Inflows Cross Rs 10,000 Crore
ETFs have collected Rs 10,161 crore in August. The equity mutual fund that had the highest inflows was the equity ETF with Rs 7,237 crore. Total investments in gold ETFs during the month stood at Rs 2,597 crore whereas silver ETFs had total net inflow of Rs 1,271 crore.
Mutual Fund AUM Rises to Rs 87.08 Lakh Crore
The total assets under management of the mutual funds industry increased by approximately 1.54% to Rs 87.08 lakh crore at the end of August from Rs 85.76 lakh crore in July.
Also Read: Equity MF Cash Holdings Fall to 19-Month Low of Rs 1.84 Lakh Cr
26 New Fund Offers Raise Rs 7,110 Crore
In August, 26 new fund offers (NFOs) were launched by the mutual fund houses, raising Rs 7,110 crore. The new schemes which saw the maximum participation were SBI Balanced Hybrid Fund, which attracts Rs 1,818 crore, followed by ICICI Prudential Balanced Fund which has Rs 1,271 crore.
