Retail participation saw growth, with total mutual fund folios rising to 24.57 crore in July from 24.13 crore in June.
New Delhi: Equity-oriented mutual funds saw net inflows of Rs 42,702 crore in the month of July, up 81 per cent from Rs 23,587 crore in June, the Association of Mutual Funds in India (AMFI) data showed on Monday.
By the end of July, the mutual fund industry’s net assets under management (AUM) increased to Rs 75.36 lakh crore. The AUM stood at Rs 74.40 lakh crore in June and Rs 72.19 lakh crore in May, according to monthly data released by AMFI.
Equity funds have seen positive flows for 53 consecutive months, with July inflows being broad-based across most categories. Record monthly inflows were driven by new fund offerings (NFOs), which raised Rs 30,416 crore – the highest NFO collection ever.
Smallcap schemes led the inflows with Rs 6,484 crore added to AUM in July, up from Rs 4,024 crore in June, marking a 61 per cent increase.
Largecap funds saw Rs 2,125 crore worth of inflows in July, up from Rs 1,694 crore in June, marking a 25 per cent month-on-month increase. Mid-cap inflows rose 38 per cent on a MoM basis.
Flexicap funds also attracted Rs 7,654 crore in inflows, witnessing a 33.5 per cent jump. Sectoral and thematic funds saw a significant increase in inflows, pulling in Rs 9,426 crore in July, up 15 per cent month-on-month.
Retail participation saw growth, with total mutual fund folios rising to 24.57 crore in July from 24.13 crore in June.
ELSS schemes continued to record net outflows, with Rs 368 crore withdrawn in July, down from Rs 556 crore of outflow in June.
Hybrid funds saw more inflows than the previous month, while arbitrage funds saw a decrease in inflows.
Open-ended debt funds also posted net inflows of Rs 1,06,801 crore during the month. Money market funds and liquid funds saw a huge upsurge in inflows on a monthly basis.
Akhil Chaturvedi, Executive Director and Chief Business Officer, Motilal Oswal Asset Management Company, said that growth upwards of 25 per cent is seen across categories, from largecap to flexicap to smallcap.
“I think Indian retail investors have come of age and seriously looking at equities a meaningful allocation to their portfolios,” he added.