Inflows into equity mutual funds reached a record high of ₹42,702 crore in July, registering a growth of 81 per cent over an inflow of ₹23,587.05 crore in June.
Market analysts said that the record inflow into equity funds marks domestic investor optimism despite the pressure of persistent outflows from overseas investors.
Within equity funds, sectoral/thematic funds and smallcap funds saw record inflows of ₹9426.03 crore and ₹6484.43 crore, which analysts attributed to investors’ willingness to take risk.
“Equity mutual funds recorded their highest-ever monthly inflow of ₹42,702 crore, with domestic institutional investors maintaining strong support. SIP contributions hit a new record of ₹28,464 crore, and contributing accounts grew 5.4 per cent to 9.11 crore — clear evidence of disciplined investing even amid volatility,” said Venkat N. Chalasani, chief executive, AMFI.
“The buoyancy in mutual fund collections is clearly evident. The smallcap category has had the most net inflows from equity-linked plans over the last 36 months, surpassing both large and midcap schemes.
“It brought in ₹1,16,587 crore, which was second only to the ₹2,22,666 crore in the thematic category. Both of these categories, which accounted for 42 per cent of all net flows over the preceding 36 months, demonstrate investors’ willingness to take on risk,” said Viraj Gandhi, CEO, SAMCO Mutual Fund.
“I think Indian retail investors have come of age and are seriously looking at equities as a meaningful allocation to their portfolios,” said Akhil Chaturvedi, executive director and chief business officer, Motilal Oswal AMC.
Hybrid schemes saw an inflow of ₹20,879.47 crore during July, led by arbitrage funds with inflows of ₹7,295.70 crore. Debt funds saw an inflow of ₹10,6801.23 crore during the month.
“The strong inflows into debt funds suggest renewed investor confidence amid potential rate shifts. This may continue if interest rates stabilize or if yield curves offer
attractive risk-adjusted returns,” said Ankur Punj, MD and national head, Equirus Wealth.
The total assets under management of the mutual fund industry grew by 1.3 per cent to ₹75.36 lakh crore.
