The Association of Mutual Funds of India (AMFI), the industry trade group for mutual funds, issued data on August 9 that showed a decline in investments in large- and mid-cap funds during July, resulting in an 8.61 percent decline in inflows into open-ended equities mutual funds to Rs 37,113.39 crore.
According to AMFI data, monthly gross systematic investment plan (SIP) inflows reached a new high of Rs 23,332 crore in July as compared to Rs 21,262 crore in June. In the meantime, for the 41st consecutive month, inflows into open-ended stock funds have stayed positive.
Equity mutual fund inflows were driven by consistent investments in sectoral or theme funds. Net inflows of Rs 18,386.35 crore were observed in the category in July. Schemes in the Sectoral/Thematic Fund category raised a total of Rs 12,974 crore in the month through nine different new fund offerings (NFOs).
Additionally, in the equity funds category, new money into large-cap funds fell 31% to Rs 670.12 crore, while new money into mid-cap and small-cap funds also decreased during the month. However, net inflows of Rs 2,109.20 crore were recorded by small-cap funds, and Rs 1,644.22 crore were recorded by mid-cap funds during the same month.
However, at Rs 7,084.61 crore, multi-cap funds—which allocate at least 25% of their assets to each of large, mid, and small-cap stocks—saw a 50% increase in inflows.
Debt mutual funds in the fixed-income sector saw net inflows of Rs 1,19,587.60 crore in the month. In June 2024, there were net withdrawals of Rs 1,07,357.62 crore from debt funds. In July, there were net inflows of Rs 70,060.88 crore into short-term liquid funds, and Rs 28,738.03 crore into money market funds.
The 10-year constant duration categories of the Medium Duration Fund, Credit Risk Fund, and Gilt Fund, on the other hand, showed considerable selling.
During the month, net inflows into open-ended mutual funds totaled Rs 1,89,141.39 crore. The benchmark Sensex of the BSE increased by 3.43 percent in July, while the NSE Nifty saw gains of 3.92 percent. Before this, June saw a record high of Rs 40,608.19 crore in inflows into equities mutual funds, up 17%.
According to data, the mutual fund industry’s net assets under management (AUM) increased to Rs 64,96,653.14 lakh billion in July. In June, the industry net AUM crossed the Rs 60 lakh crore threshold for the first time.
