Equity Fund Inflows Drop 12% in July; SIPs Surpass Rs 15,000 Cr
Open-ended equity mutual funds witnessed a 12 per cent dip in net inflow, amounting to Rs 7,626 crore for July, according to data released by the Association of Mutual Funds in India (AMFI) on 9 August. This decline was primarily attributed to ongoing outflows from large-cap funds.
However, Indian investors showcased disciplined investment behavior, as evidenced by the remarkable surge in Systematic Investment Plans (SIPs), which breached the Rs 15,000 crore mark for the first time. In July, SIP inflows reached an unprecedented Rs 15,245 crore, surpassing June's figure of Rs 14,735 crore.
Despite the minor contraction in equity fund investments, net inflows sustained positive momentum for the 29th consecutive month in July, aligning with the bullish trend in equity markets. During the month, the BSE benchmark, Sensex gained 2.80 per cent, while the NSE Nifty 50 rose by 2.94 per cent.
AMFI's Chief Executive, N. S. Venkatesh, highlighted the surge in retail investors' engagement with mutual funds, translating into substantial inflows across diverse scheme categories. Notably, the standout performer was the SIP segment, which saw a remarkable addition of 33.06 lakh new accounts and an all-time high monthly contribution of Rs 15,245 crore. Additionally, the industry's Assets Under Management (AUM) exhibited a robust year-on-year growth of 25 per cent, underscoring the pivotal role of mutual funds in facilitating the financialization of savings.
