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Business News/ Mutual Funds / News/  Equity mutual fund inflows fall to 7,626 crore in July: AMFI Data
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Equity mutual fund inflows fall to ₹7,626 crore in July: AMFI Data

Equity mutual funds saw a net inflow of ₹7,505 crore in July 2023, down from ₹8,245 crore in June, according to AMFI data. ETFs had an outflow of ₹353 crore in July, compared to inflows of ₹3,402 crore in June.

As of March 2018, the Indian mutual funds industry had total AUM worth ₹21.36 trillion, of which 3.8% were managed passively, said the report.Premium
As of March 2018, the Indian mutual funds industry had total AUM worth ₹21.36 trillion, of which 3.8% were managed passively, said the report.

The equity mutual funds have witnessed a net inflow of 7,625.96 crore in July 2023 as against an inflow of 8,637 crore in June 2023, according to Association of Mutual Funds in India (AMFI) data. As per the AMFI data, ETFs registered an outflow of 353 crores in July vs 3,402 crore inflows in June.

Among the equity mutual fund categories, the small-cap category received the highest inflows of 4,171.44 crore, followed by the multi-cap category with 2,500.47 crore. On the contrary, large-cap funds saw the highest outflow of 1,880 crore, followed by the focused funds category which witnessed an outflow of 1,066.72 crore.

Liquid funds recorded the highest inflow of 51,938.41 crore in July, while the debt category recorded 61,440.08 inflows in July.

 

AMFI data for July
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AMFI data for July

"During July 2023, Nifty 50 gained 1.4%, the Nifty Small-cap 100 index was up by 6.4%, and the Nifty Midcap 100 index increased by 5.5%. This clearly demonstrates where the markets’ action is concentrated. This explains the inflow of 5,795 crores into mid and small-cap funds from a total inflow of 7,626 crore into equity-based funds. Large cap funds, on the other hand, have shown outflows for three months in a row, totalling 1,880 crores.

Although equity-linked schemes saw an inflow of 7,626 crores, but it was down by 12% on Q-o-Q and 14% on YoY basis. Another interesting feature of July MF Data was SIP Book Crossing 15,000 crore mark for the first time ever at 15,245 crore and the number of new folios added in July at over 33 lakh accounts at 33,06,337 accounts.

The number of SIP accounts stood at highest ever at 6,80,52,826 for July 2023 compared to 6,65,37,033 in June 2023. The SIP AUM stood at 8,32,275 crore for July 2023 compared to 7,93,609 crore in June 2023.

Debt-oriented schemes, on the other hand, rebounded strongly after experiencing outflows in June 2023. A whopping 61,440 crores were earned during the month, representing a 146% YoY increase, owing to rising bond yields globally and the assumption of a hawkish attitude from the next RBI policy Thursday (tomorrow).

Nearly 52,000 crores of this 61,440 crores came solely from liquid money. Money market and short-term funds also brought in over 15,500 crores. Another significant inflow was made by arbitrage funds, to the tune of 10,075 crores, " said Viraj Gandhi, CEO, SAMCO MF on AMFI data for July 2023.

AMFI Data for June

Amid a rally in the stock market, equity mutual funds attracted 8,637 crore in June, making it the highest net inflow in three months, This was way higher than 3,240 crore inflow seen in May and 6,480 crore in April, Amfi data showed. Inflow through SIP was at 14,734 crore last month. Apart from equities, hybrid schemes saw an inflow of 4,611 crore, with a large part of flow into arbitrage funds at 3,366 crore.

Passive funds gain traction among investors: Study

Passive funds have gained traction among investors in India in the last few years, capturing a market share of over 17 per cent of assets under management (AUM) in 2023 from 1.4 per cent in 2015, according to a study.

A passive fund is an investment vehicle that tracks a market index or a specific market segment. These funds include passive index funds, Exchange Traded Funds (ETFs), and Funds of Funds investing in ETFs.

Meanwhile, Capital markets regulator Sebi is engaged with the mutual fund industry to introduce 'MF Lite' regulations for passive funds, a move that will reduce the compliance burden and foster innovation.

Highlights AMFI Mutual Fund Industry Monthly Data for July 2023: 

Mutual Fund Industry Net AUM is 46,37,565 crores, while AAUM was 46,27,687 crores for the month of July 2023

Mutual Fund Folios reached an all-time high of 15, 14,21,270 in the month of July 2023 compared to 14,91,31,708 for the month of June 2023.

Retail MF Folios (Equity + Hybrid + Solution Oriented Schemes) also at an all-time high at 12,08,50,415 for the month of July 2023 compared to 11,90,63,434 in June 2023

Retail AUM (Equity + Hybrid + Solution Oriented Schemes) stood at 24,17,268 crores for July 2023, with an Average AUM of 23,77,395 crores

A total of 17 schemes were launched in the month of July 2023, all in open ended category, raising a total of 6,723 crores.

SIP contribution stood at an all time high of 15,244.73 crores in July 2023.

The number of SIP accounts stood at highest ever at 6,80,52,826 for July 2023 compared to 6,65,37,033 in June 2023

The SIP AUM stood at 8,32,274.61 for July 2023, compared to 7,93,608.79 crores for June 2023.

Number of new SIPs registered in July 2023 were 33,06,337 highest ever.

NS Venkatesh, CEO, AMFI said ,“The surge in retail investors' interest in mutual funds has translated into impressive inflows across scheme categories. The star performer this month has been Systematic Investment Plan (SIP), with an impressive 33,06,337 new SIP accounts registered and a record 15,245 crores of monthly contribution. Moreover, the industry's Assets Under Management (AUM) have grown by 25% YoY, underscoring mutual funds' significance in financialization of savings.

The substantial increase in SIPs is a result of mutual fund houses and AMFI's widespread awareness campaigns, tapping into Bharat's wealth and aspiration to partake in market growth. Investors in B30 cities are indirectly investing in stock markets via SIPs in Equity Mutual Funds.

Short term debt fund inflows continue due to treasury management by banks and corporates, while hybrid categories like multi-asset allocation funds have seen increased investor interest. Investors are increasingly realizing that mutual funds have various options suited for their risk profile and goals and that they can partake in the India growth story by investing as little as 500 a month"

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ABOUT THE AUTHOR
Sangeeta Ojha
A business media enthusiast. Writes on personal finance, business and banking.
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Published: 09 Aug 2023, 02:22 PM IST
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