New Delhi: Mutual fund schemes in India recorded a net inflow of around Rs 2.36 lakh crore in July, reversing an outflow of Rs 52,949 crore in June, while assets under management (AUM) rose 4.3 per cent month-on-month to Rs 85.76 lakh crore, according to data released by the Association of Mutual Funds in India (AMFI) on Tuesday.
The sharp turnaround was driven primarily by debt-oriented schemes, which attracted Rs 1.88 lakh crore in July, compared with an outflow of around Rs 1.09 lakh crore in June. Liquid funds accounted for the largest share of debt inflows at Rs 1,19,066 crore, followed by overnight funds at Rs 40,413 crore and money market funds at Rs 21,180 crore.
The strong debt flows suggest investors continued to favour liquidity and flexibility rather than taking significant duration risk.Equity-oriented schemes also remained in positive territory, attracting Rs 24,697 crore in July, although inflows declined 15 per cent from Rs 28,973 crore in June and were sharply below Rs 42,702 crore in July last year. Despite the moderation, equity mutual funds recorded their 65th consecutive month of net inflows.
The slower pace of equity inflows indicates greater selectivity among investors amid concerns over valuations and muted equity returns. “The moderation in equity mutual fund inflows reflects a degree of selectivity rather than a loss of investor confidence in equities,” said Ankur Punj, MD & Business Head, Equirus Wealth.
Among equity categories, small-cap funds led inflows at Rs 7,768 crore, followed by mid-cap funds at Rs 6,192 crore and flexi-cap funds at Rs 4,710 crore. Large and mid-cap funds attracted Rs 3,425 crore, while multi-cap funds received Rs 3,227 crore. Sectoral and thematic funds recorded inflows of Rs 1,328 crore.Large-cap funds, however, witnessed an outflow of Rs 1,322 crore, while ELSS funds saw an outflow of Rs 959 crore and dividend-yield funds recorded an outflow of Rs 169 crore.
Sustained systematic investment plan (SIP) contributions continued to support equity participation. SIP inflows rose 12.28 per cent year-on-year to Rs 31,961 crore in July from Rs 28,464 crore a year earlier and increased marginally from Rs 31,781 crore in June.
