Equity inflows dip as ETFs marginally surge, shows AMFI monthly data release

Inflows in equity funds dipped sharply, from Rs 22,583 crores in July 2021 to around 8,666 crores for the month of August, the latest monthly data released by AMFI (Association of Mutual Funds of India) showed. However, it should be noted that that last month's high inflows could be attributed to multiple, large NFOs (New Fund Offers) that were launched.

Debt funds, on the other hand, saw an extremely steep fall in their monthly inflows, falling to merely Rs 1,074 crores in the month of August 21, from a high of Rs 73,694 crores. Here again, a significant influx was seen in  Liquid and Money Market schemes, which are categories that usually see rapid, frequent inflow and outflows of funds. 

ETFs (Exchange Traded Funds), however, saw a marginal rise in the net inflows witnessed for August 21, peaking at Rs 11,591 crores from Rs 10,084 crores last month. 

Mellow Performance During the last quarter (April-July 2021), almost 75 lakh new SIPs were registered, taking the cumulative Mutual Fund SIP accounts at a stellar 4.32  crores in August 2021. This was a monthly rise from the previous month’s figure of 4.17 crores. August 2021 also saw all-time high SIP inflows worth Rs 9,923 crores for August,21 from the amount collected via them for the month of July, which stood at  Rs 9,609 crores. Also, at 10.85 crore folios, the MF industry added over 80 lakh folios, within a short period of the last 5 months in FY22. In fact, the new SIPs registered during August 2021 at 24.92 lakhs is highest ever registration, which itself, signals the growing popularity of SIPs as a favored long-term wealth creation vehicle.

Take a look at the fund flows and performance of various mutual funds between July and August, 21.

While large and small-cap funds saw solid net outflows after seeing a robust fund influx last month, Index funds continued to go from strength to strength indicating a thriving, increasing demand for passive investing, as the inflows increased from Rs 1,110 crores in July 2021 to Rs 1,934 crores last month. Mid-cap funds also saw subdued inflows for this month to the tune of Rs 161 crores. Cumulatively, 15 schemes were launched this month, amassing funds worth Rs 23,668 crores.

Commenting on the same,  Mr. N S Venkatesh, Chief Executive, AMFI said:
“Overall positive flows in the open-ended MF schemes and market indices touching an all-time high, helped the Indian MF Industry Net AUMs to breach record INR 36 lakh crore milestone in August 2021. Retail AUM at INR 17.15 lakh crores, almost half of Total Industry AUMs, SIP AUMs at record high INR 5.26 lakh crores, which now forms a third of Retail AUM, healthy rise in SIP Accounts at record 4.32 crores and monthly SIP contribution at an all-time high at INR 9,923.15 crores is reflective of established and rising retail preference towards mutual funds as a long-term wealth creation avenue. Continued robust month-on-month fund mobilization in Arbitrage and dynamic asset allocation schemes and affinity towards Thematic / Sectoral and diversified Flexicap schemes since the start of the new fiscal, FY22, including through SIPs has over-shadowed profit-booking during the last few months", he elaborated.