Stock inflows fall as MF sector assets hit new high

Net inflows into equity funds fell for the third consecutive month, falling 31% to Rs 6,120 crore in August from Rs 8,898 crore in July, even as overall assets under management the mutual fund industry was reaching a new high.

Riding the unexpected bull run, assets in the industry jumped to Rs 39.34 lakh crore from Rs 37.35 lakh crore in July, largely due to the gain in market value.

However, equity fund investors continued to report profits as redemptions hit Rs 21,726 crore (Rs 13,756 crore), indicating investors are still unconvinced of the market’s rebound amid the turmoil. world.

Flexi cap funds recorded the highest inflow of Rs 2,100 crore, followed by mid and small cap funds, which recorded a net inflow of Rs 1,479 crore (Rs 1,245 crore) and Rs 1,260 crore ( Rs 1,779 crore). Sector and equity-linked savings schemes saw an outflow of Rs 1,267 crore and Rs 133 crore, compared to an inflow of Rs 215 crore and Rs 328 crore in July.

Inflows through the Systematic Investment Plan increased to Rs 12,693 crore, from Rs 12,139 crore, with SIP assets reaching Rs 6.39 lakh crore (Rs 6.09 lakh crore). The industry opened 21.13 lakh new SIPs last month.

Arun Kumar, head of research at FundsIndia, said while equity fund inflows were positive, they have moderated in recent months. Domestic investors generally tend to see profits near all-time highs, which is also reflected in lower inflow volumes, he said.

Published on

September 09, 2022