Equity funds on fire! Inflows soar 17% to reach new peak in June

Published on Jul 10, 2024 11:33

Inflows into equity mutual funds surged by 17% to a record-breaking Rs 40,608.19 crore in June, according to data released by the Association of Mutual Funds of India (AMFI). This marks the second consecutive month of record-breaking inflows, following a surge of 83.42% in May.

The strong investor sentiment is reflected in the overall asset under management (AUM) of the mutual fund industry, which crossed a significant milestone for the first time, reaching Rs 61.16 lakh crore in June. This positive trend comes despite net outflows from debt funds, which amounted to Rs 1,07,357.62 crore during the month.

Equity SIPs (Systematic Investment Plans) continued their upward trajectory, with contributions reaching Rs 21,262 crore in June, surpassing the Rs 20,000 crore mark for the third consecutive month. The number of new SIPs registered also hit a new high of 55.13 lakh, further solidifying the growing investor base.

Sectoral/thematic funds emerged as the frontrunners in terms of inflows, attracting Rs 22,351.69 crore in June. This can be partially attributed to new fund offerings (NFOs) within the category, which garnered Rs 12,974 crore during the month.

Multicap funds witnessed a significant increase of 78% in inflows, reaching Rs 4,708.57 crore. Large-cap funds also registered positive growth with a 46% rise to Rs 970.49 crore. However, inflows into small and mid-cap funds witnessed a decline, with small-cap funds experiencing a 17% dip and mid-cap funds facing a 3% decrease.

Debt funds, on the other hand, saw net outflows, primarily driven by factors like advance tax payments and quarter-ending financial obligations. Liquid funds and overnight funds faced the brunt of these outflows, with net outflows of Rs 80,354.03 crore and Rs 25,142.72 crore, respectively.

This data underlines the continued investor confidence in the equity market, particularly through SIPs and thematic funds. While debt funds experienced outflows due to short-term financial needs, the overall growth trajectory of the mutual fund industry remains positive.