Mutual Funds: Inflows into equity schemes rose 3%, debt schemes saw 62% dip in August, reveals AMFI data

The mutual fund industry saw a notable decrease (43 per cent) in net inflows for the month of August, to ₹1.08 lakh crore against ₹1.89 lakh crore in July. This decline was driven primarily by a significant drop in inflows to the tune of 62 per cebt into debt mutual funds, reveals the AMFI (Association of Mutual Funds in India) data released on Tuesday.

Despite the overall downturn, equity mutual funds saw a 3 per cent increase in inflows, reaching ₹38,239.16 crore. This uptick occurred even amid a relatively subdued performance in the equity markets.

The latest AMFI data highlights a continued positive trend in investor confidence within the mutual fund sector. Large cap mutual funds saw an inflow of ₹2,636 crore in Sept against ₹670 crore in August.

Mid cap schemes saw an inflow of ₹3,054 crore against ₹1,644 crore in August. Small cap funds saw an inflow of ₹3,209 crore vis-à-vis ₹2,109 crore in August.

Meanwhile, sectoral funds saw an inflow of ₹18,117 crore in Aug against ₹18,383 crore in July.

Value schemes witnessed an inflow of ₹2,170 crore whereas the corresponding data for the previous month was ₹1,728 crore. Flexi cap mutual funds saw an inflow of ₹3,513 crore against ₹3,052 crore.

SIP contribution hit all-time high

I. In August, SIP (systematic investment plan) contribution in mutual funds stood at an all-time high at ₹ 23,547.34 crores as against ₹ 23,331.75 crores in July 2024.

II. The number of SIP accounts stood at highest ever at 9,61,36,329 in August 2024 as compared to 9,33,96,174 in July 2024

III. A total of 18 schemes were launched in the month of August 2024, all in the category of open-ended scheme, raising a total of ₹ 13,815 crores.

"The steadily increasing SIP contribution of Rs. 23,547 crores in August 2024 highlights the shifting investor sentiment towards disciplined and long-term wealth accumulation," says Venkat Chalasani, Chief Executive, AMFI.

Madhu Nair, CEO, Union Mutual Fund, says, “Pure active equity schemes have crossed 30 lakh crores in AUM across the industry during the month of August 2024. Equity flows for the month of August 2024 has been a mix of SIP flows, NFOs and existing schemes. Thematic Funds still top the charts, while other categories like Large cap Fund, Multi cap Fund, Large & Midcap Fund and Midcap Fund have also seen good net flows.”