Equity mutual funds saw strong inflows in July, with investors adding Rs 42,702 crore to growth/equity-oriented schemes, an 81 percent increase from June, data release by the Association of Mutual Funds of India (AMFI) on August 11 shows. The inflows were at Rs 37,113 crore in July 2024.
Large-cap, flexi-cap and thematic funds accounted for the bulk of the inflows. Mid and small-cap funds also saw gains, though they remained volatile. The flows were supported by robust systematic investment plan (SIP) contributions, steady retail participation and allocations from high net-worth individuals.
"Equity mutual funds recorded their highest-ever monthly inflow of Rs 42,702 crore, with DIIs maintaining strong support. SIP contributions hit a new record of Rs 28,464 crore, and contributing accounts grew 5.4% to 9.11 crore — clear evidence of disciplined investing even amid volatility," says Venkat N Chalasani, Chief Executive, AMFI.
At Rs 33.28 lakh crore, AUMs for the equity segment were Rs 1.91 lakh crore higher than in June and Rs 4.94 lakh crore above the year-ago period. The growth reflects both market appreciation and sustained investor buying.
"The industry crossed Rs. 75 lakh crore in AUM for the first time, a big sign of financial savings. Most equity categories have seen strong flows, with flexi cap leading the charge by recording the highest net flows in equity and also dominating net flows for the year," says Anand Vardarajan, Chief Business Officer, Tata Asset Management.
Also read: Strong surge in net equity inflow for July at a record high of over Rs 42,700 crore, shows AMFI data
Sectoral funds benefited from targeted narratives around manufacturing, renewable energy and consumption themes. Flexi-cap strategies drew interest for their ability to adapt to market conditions, while large-cap funds offered stability in a still-volatile global environment.
Also read: Equity fund inflows rise 24% in June to Rs 23,587 crore: AMFI data
With SIP inflows remaining strong and domestic macro indicators stable, equity mutual funds could sustain positive flows in the coming months, though global economic headwinds and commodity price movements will remain key watch factors, AMFI said.
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