MFs get highest-ever SIP inflows in July

The growth rate of the industry is positive due to continuous investment in mutual funds by retail investors. At present, mutual funds have become an important part of the financial strategy of retail investors - Venkat Chalasani, Chief Executive, AMFI

Rising Inflows

♦ Total equity inflows were record Rs40,608.19 cr in June

♦ But they declined by 8.6% to Rs37,113.4 cr in July

♦ Open-ended equity fund inflows rose for 41st consecutive month

♦ Maximum investment in sectoral/ thematic funds

♦ Net investment of Rs18,386.35 cr in this category

New Delhi: India’s mutual fund (MF) industry witnessed the highest ever Rs23,332 crore SIP inflow in July, which in June was Rs21,262 crore. Due to the recent increase in Systematic Investment Plans (SIPs) inflow, Assets Under Management (AUM) of the total mutual fund industry reached Rs64.69 lakh crore in July as against Rs60.89 lakh crore in June.

According to the AMFI (Association of Mutual Funds in India) data, Total inflows into equity funds declined by 8.6 per cent to Rs37,113.4 crore in the last month, which was Rs40,608.19 crore in June, the highest ever recorded equity inflow in mutual funds in India.

This is the 41st consecutive month that inflows into open-ended equity funds have been positive. In July, Sensex surged 3.43 per cent and Nifty railed 3.92 per cent.

Venkat Chalasani, Chief Executive of AMFI, said that “the growth rate of the industry is positive due to continuous investment in mutual funds by retail investors. At present, mutual funds have become an important part of the financial strategy of retail investors.”

Maximum investment is being seen in sectoral and thematic funds. A net investment of Rs 18,386.35 crore came in this category in July.

There was also a net inflow of Rs1,19,587.60 crore in debt mutual funds in July. In contrast, there was a net outflow of Rs1,07,357.62 crore in June. There was a net inflow of Rs70,060.88 crore in the short-term liquid fund category and Rs28,738.03 crore in money market funds.

FPIs pumped in Rs54,727 core in equity and debt in the full month of July. According to the NSDL data, FPIs invested Rs32,364 crore in equity and Rs22,363 crore in debt in July.

FPI activities are influenced by factors like the performance of the global equity markets, the movement of the dollar index, incremental geopolitical events, and opportunities in the Indian markets considering slightly elevated valuation levels.