Equity mutual funds witnessed a net inflow of Rs 15,498 crore in June amid heightened volatility in the stock market and consistent selling by Foreign Portfolio Investors (FPIs). Equity mutual funds witnessed positive momentum for the 16th straight month in June.
Inflows into equity mutual funds in June was much lower compared to the net inflow of Rs 18,529 crore seen in May, data from the Association of Mutual Funds in India (AMFI) showed on Friday.
The lower quantum of net inflow from the previous month could be attributed to investors adopting the cautious path given the ongoing challenges to the investment environment.
Equity schemes have been witnessing net inflow since March 2021, highlighting the positive sentiment among investors. Prior to this, such schemes had consistently witnessed outflows for eight months from July 2020 to February 2021, losing Rs 46,791 crore.
All the equity-oriented categories received net inflows in June with the Flexi-cap Funds category being the biggest beneficiary with a net inflow of Rs 2,512 crore. This was followed by the multi-cap fund that witnessed Rs 2,130 crore net infusion. The latest inflow comes at a time when the domestic equity market is reeling under severe pressure.
Besides foreign investors have dumped Indian shares worth Rs 50,203 crore in June, making it the worst net outflow in over two years, on aggressive rate hike by the US Federal Reserve, elevated inflation accompanied by higher valuation of domestic equities. This also marked the ninth consecutive monthly withdrawal by FPIs. Apart from equity, Gold exchange traded funds (ETFs) experienced a net inflow of Rs 135 crore in the month under review.
However, the debt segment saw a net outflow of Rs 92,247 crore in June, as compared to a net withdrawal of Rs 32,722 crore in the preceding month. Overall, the mutual fund industry registered a net outflow of Rs 69,853 crore last month, as compared to a net pull out of Rs 7,532 crore in May.
The outflow pulled down the average assets under management (AUM) of the industry to Rs 36.98 lakh crore at the end of June, from Rs 37.37 lakh crore at May-end.
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