Shillong, August 9: In July, equity mutual funds experienced a sequential decline in net inflows due to outflows from large-cap funds. However, the positive flow streak persisted for the 29th straight month, according to Deepak Jasani, Head of Retail Research at HDFC Securities.
Net investments in actively managed equity schemes dropped by 11.7%, reaching Rs 7,626 crore in July from the previous month’s Rs 8,638 crore. Notably, SIP inflows hit a new record high of Rs 15,242.7 crore in July, as highlighted by Jasani.
As per news agency IANS, AMFI’s CEO, NS Venkatesh, highlighted the significant inflows across scheme categories, attributing them to the surge in retail investor interest in mutual funds. The standout this month was the Systematic Investment Plan (SIP), which saw an impressive addition of 33,06,337 new SIP accounts, alongside a record-breaking monthly contribution of Rs 15,245 crore. Venkatesh also emphasized the industry’s year-on-year growth of 25% in Assets Under Management (AUM), underscoring mutual funds’ importance in the financialization of savings.
Venkatesh also noted how investors from B30 cities indirectly participate in stock markets through SIPs in Equity Mutual Funds.
Continued inflows into short-term debt funds were attributed to treasury management by banks and corporations, while hybrid categories like multi-asset allocation funds saw increased investor interest. Investors are progressively realizing the diverse mutual fund options tailored to their risk profiles and financial goals. The opportunity to be part of India’s growth narrative by investing as little as Rs 500 per month is gaining recognition among investors.
