📷 Image Credits: Moneycontrol
In June, the equity mutual fund industry in India witnessed a substantial surge in inflows, reaching a fresh high of Rs 40,608.19 crore, according to data from the Association of Mutual Funds of India (AMFI) released on July 9, 2024. This marked a 17% increase from the previous month and reflected a growing investor confidence in the market. The overall assets under management (AUM) of the mutual fund industry also reached a record level of Rs 61.16 lakh crore in June, showcasing a positive trend in the industry.
The data further revealed that open-ended equity funds continued to attract significant inflows for the 40th consecutive month. Sectoral/Thematic Funds emerged as the top choice for investors, receiving a net investment of Rs 22,351.69 crore in June. The popularity of new fund offers (NFOs) was evident as nine new funds collected Rs 12,974 crore during the month.
Moreover, the investment via systematic investment plans (SIPs) saw a notable increase, reaching Rs 21,262 crore in June compared to Rs 20,904 crore in May. This consistent growth in SIP flows, along with NFO collections and lumpsum purchases, contributed to the overall record flows in equity funds for the month.
On the other hand, debt mutual funds experienced net outflows of Rs 1,07,357.62 crore in June, indicating a shift in investor preferences towards equity funds. Among equity fund categories, multicap funds witnessed a significant 78% jump in inflows to Rs 4,708.57 crore, while largecap funds saw a 46% increase to Rs 970.49 crore. However, smallcap funds noted a 17% decline in inflows to Rs 2,263.47 crore.
The performance of the Indian stock market in June was characterized by volatility, driven by the general elections results and subsequent market reactions. Despite the initial dip following the election outcome, the benchmark indices, NSE Nifty and BSE Sensex, recovered and closed the month with gains of around 7% each, showcasing resilience and investor confidence in the market. Overall, the positive trends in equity mutual fund inflows reflect a favorable investment climate and growing interest among investors in the Indian market.
