Equity fund inflows rise by 17% to Rs 40,608 crore in June, a fresh high: AMFI data

Equity mutual fund inflows had surged 83.42 percent to a record high of Rs 34,697 crore in May.

Inflows into equity mutual funds surged by 17 percent to Rs 40,608.19 crore in June, a fresh high according to the latest data released by the Association of Mutual Funds of India (AMFI) on July 9.

The net inflow into equity mutual funds had surged by 83.42 percent to a record high of Rs 34,697 crore a month ago.

Assets under management (AUM) of the mutual fund industry rose to hit Rs 61.16 lakh crore in June, data showed. This is the first time the industry AUM has risen past the Rs 60 lakh crore level.

Meanwhile, debt mutual funds saw net outflows of Rs 1,07,357.62 crore during the month. Overall, open-ended mutual funds saw net outflows of Rs 43,108.80 crore during the month.

Meanwhile, inflows into open-ended equity funds have remained in the positive zone for the 40th month in a row.

Speaking on June monthly data, Venkat Chalasani, Chief Executive, AMFI, said, “The mutual fund industry has demonstrated remarkable growth, becoming a cornerstone of financial stability and wealth creation for crores of investors. The industry continued to benefit from sustained flows into equity-oriented mutual funds, hybrid funds and passive funds.”

SIP book

The investment via systematic investment plans (SIPs) rose to Rs 21,262 crore in June against Rs 20,904 crore in May. Monthly investments via SIPs had topped the Rs 20,000-crore landmark for the first time ever in April 2024.

The number of new SIPs registered in June 2024 stood at 55.13 lakh, while the SIP AUM is highest ever at Rs 12.44 lakh crore for the month of June compared with Rs 11.53 lakh crore for May.
Further, the number of SIP accounts stood at highest ever at 8.99 crore in June against 8.76 crore in May.

Equity funds

Data shows that most inflows among equity funds came through Sectoral/Thematic Funds, with the category getting net investment of Rs 22,351.69 crore in June.

The inflows into sectoral/thematic funds were fuelled by new fund offers (NFOs) where nine new funds collected Rs 12,974 crore during June.

“SIP flows, NFO collections and lumpsum purchase on the days when markets witnessed correction led to record flows in equity funds in June. As the confidence grows, repeat investments and word of mouth is leading to this movement in flows and industry growth,” said Manish Mehta, National Head - Sales, Marketing & Digital Business, Kotak Mahindra Mutual Fund.

In the equity fund category, multicap funds inflows jumped 78 percent to Rs 4,708.57 crore. Additionally, investments into largecap funds rose 46 percent to Rs 970.49 crore. However, smallcap funds saw 17 percent dip in inflows to Rs 2,263.47 crore, while investments into midcap funds slipped 3 percent to Rs 2,527.84 crore.

June was a volatile month for equities as an asset class with general elections results triggering a sharp dip and then a quick rebound in benchmark indices in the first week, after the results were announced.

Benchmark indices, NSE Nifty and BSE Sensex dropped nearly 6 percent each on June 4 after election results showed that the BJP did not secure an outright majority on its own in the Lok Sabha elections.

However, with the BJP-led National Democratic Alliance forming government at the Centre for the third straight term, indices recovered subsequently, and for the month of June, both Nifty and Sensex gained around 7 percent.

Fixed-income funds

Among debt funds, the Liquid Fund category saw net outflows of Rs 80,354.03 crore during the month. The overnight fund category also saw net outflows of Rs 25,142.72 crore.

According to experts, advance tax payments and other quarter-ending accounting and financial necessities resulted in an outflow in the debt category in June.

“Fixed income flows have been negative, except for money market and low-duration funds, which saw positive flows largely driven by higher yields and quarterly crossover investments,” said Anand Vardarajan, Chief Business Officer - Key Clients & Alternate Investments, Tata Asset Management.