Fund flows into India’s equity mutual funds surged to an all-time high in July, as domestic investors seized on a market dip fuelled by US–India trade tensions and subdued corporate earnings, industry data revealed on Monday.
Net inflows into equity schemes rose 81 per cent month-on-month to Rs 42,702 crore (USD 4.02 billion), according to figures from the Association of Mutual Funds in India (AMFI).
Total assets under management for the mutual fund industry also reached a record Rs 75.36 lakh crore.
Contributions through systematic investment plans (SIPs), a favoured periodic investment method among retail investors, climbed to a record Rs 28,464 crore, with the number of contributing SIP accounts rising to 91.1 million from 86.4 million in June.
Equity mutual funds recorded inflows for the 53rd consecutive month, despite foreign portfolio investors withdrawing USD 2 billion from Indian equities in July amid ongoing uncertainty over a US–India trade deal and expectations of another weak earnings quarter.
These sustained domestic inflows helped limit losses on benchmark indices. The Nifty fell 2.9 per cent in July, while small- and mid-cap indices declined 5.8 per cent and 3.9 per cent, respectively.
Large-cap funds drew Rs 2,125 crore, up 25.5 per cent from June, while mid-cap allocations rose 38 per cent to Rs 5,182 crore. Small-cap funds saw the sharpest rise, with inflows up 61 per cent to Rs 6,484 crore.
Gold Exchange Traded Funds attracted Rs 1,256 crore, and Silver ETFs brought in Rs 1,904 crore during the month.