Mutual fund monthly snapshot - Net inflows take a dramatic dip, equity mutual fund inflow surges over 3 per cent in August

While debt funds took a hit in August 2024, equity funds, particularly small and mid-cap categories, showed resilience, helping the industry’s total assets to reach Rs 66.70 lakh crore.

In August, the Indian mutual fund industry experienced a significant dip in net inflows, dropping by 43 per cent to Rs 1.08 lakh crore from July's Rs 1.89 lakh crore. This was primarily due to a sharp 62 per cent reduction in Debt Fund inflows.

However, equity mutual fund inflows rose by 3.03 per cent, reaching Rs 38,239.16 crore, driven by demand for small- and Mid-Cap funds. Data from the Association of Mutual Funds of India (AMFI) showed that for the first time, net assets under management (AUM) crossed the Rs 65 lakh crore mark, reaching Rs 66.70 lakh crore.

Category-Wise Inflows
Sectoral and thematic funds remain the largest category with Rs 4.45 lakh crore AUM, contributing 47 per cent to active equity flows. Small-Cap funds saw an increase in inflows to Rs 3,209.3 crore, and mid-cap schemes attracted Rs 3,064.58 crore.

Large-Cap funds rose to Rs 2,636.8 crore, while multi-cap funds received Rs 2,475.06 crore, a notable decline from Rs 7,084.6 crore in July. Flexi-cap funds led with inflows of Rs 3,513 crore, up from Rs 2,081 crore the previous month.

Sectoral/thematic funds remained strong with Rs 18,117 crore in inflows.

Fixed Income Funds
August witnessed a recovery in liquid funds, with Rs 13,594.87 crore in inflows, compared to July's significant outflow of Rs 70,060.9 crore. However, credit-risk funds saw continued outflows, totalling Rs 390.41 crore.

Debt funds saw net inflows of Rs 45,169 crore in August, rebounding from an outflow of Rs 1.19 lakh crore in July.

Net Flows and SIP Contributions
Overall net inflows across mutual funds dropped to Rs 1.08 lakh crore in August. Systematic Investment Plan (SIP) contributions hit a new peak, recording Rs 23,547.34 crore in August, up from Rs 23,322 crore in July.

Conclusion
While debt funds took a hit, equity funds, particularly small- and mid-cap categories, showed resilience, helping the industry’s total assets to reach Rs 66.70 lakh crore.

Disclaimer: The article is for informational purposes only and not investment advice.