Equity mutual fund inflows rise to ₹22,583 crore in July
THE INFLOWS PUSHED THE MUTUAL FUND INDUSTRY’S AUM TO AN ALL-TIME HIGH OF ₹35.32 LAKH CR IN JULY
Equity mutual funds witnessed a staggering net inflow of ₹22,583 crore in July, making it the fifth consecutive monthly infusion, with flexi-cap category accounting for most of the inflow.
This was much higher than a net inflow of ₹5,988 crore seen in June, data from the Association of Mutual Funds in India showed on Monday.
Equity schemes saw net inflow of ₹10,083 crore in May, ₹3,437 crore in April and ₹9,115 crore in March. Prior to this, equity schemes had consistently witnessed outflows for eight months from July 2020 to February 2021.
The inflow pushed assets under management (AUM) of the mutual fund industry to an all time high of ₹35.32 lakh crore in July-end from ₹33.67 lakh crore in June-end.
According to the data, Inflows into equity and equitylinked open ended schemes were at ₹22,583.52 crore in July.
Barring, equity linked saving schemes (ELSS) and value fund, which saw withdrawal to the tune of ₹512 crore and ₹462 crore, respectively, all the equity schemes witnessed inflow last month.
Within the categories of equity funds, flexi cap segment saw highest net infusion of ₹11,508 crore.
This large inflow can be attributed to ICICI Prudential Flexicap fund and other new fund offerings (NFOs), Gopal Kavalireddi, Head of Research at FYERS said.
Apart from equities, investors put in ₹19,481 crore in hybrid funds in the month under review. This included over ₹14,924 crore in arbitrage funds.
Further, gold exchange traded funds (ETFs) witnessed net inflow of ₹257 crore last month, compared to ₹360 crore in June.
In addition, investors infused a net sum of ₹73,964 crore in debt mutual funds in the month under review compared to a net ₹3,566 crore in June.
Overall, the mutual fund industry witnessed a net inflow of ₹1.14 lakh crore across all segments last month, compared to an inflow of ₹15,320 crore in June.
The recently-created flexicap fund category is emerging as the hottest segment in the ₹11-lakh crore equity mutual funds space.
Buoyed by the success of ICICI Prudential Flexicap Fund, more fund houses are lining up new fund offerings (NFO) in this area. Industry players say the flexicap category could emerge as the biggest segment in the equity MF space.
Recently, ICICI Pru Flexicap NFO’s collected a record ₹10,200 crore. Meanwhile, Nippon India MF on Tuesday announced the launch of Nippon India Flexicap Fund and ITI MF filed an offer document with market regulator Sebi for a flexicap scheme.