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Equity mutual funds witnessed a net inflow of 15,498 crore in June amid heightened volatility in the stock market, lower than the 18,529 crore net inflows witnessed in May, according to data from the Association of Mutual Funds in India (AMFI). Despite the recent equity market correction, equity mutual funds witnessed positive momentum for the 16th straight month in June.

The latest inflow comes at a time when the domestic equity market is reeling under severe pressure. Foreign investors have dumped Indian shares worth 50,203 crore in June amid aggressive rate hikes by the US Federal Reserve and worries over global growth. 

According to the latest AMFI data, number of SIP accounts stood at all-time high in June 2022 at 5.54 crore and monthly SIP contribution held strongly at 12,276 crore.

“These trends reflect sign of maturity in Investors mindset. SIP contribution remaining above 12,000 crore indicates better awareness among retail investors about long term orientation of equity investments and understanding of current volatility as a part and parcel of equity investing. Instead of reading too much into net equity inflow dipping, the heartening thing to note is that both net equity inflow and net inflow into hybrid funds remained resilient despite relentless selling by FPI’s and market correction during the year so far," said Akhil Chaturvedi, Chief Business Officer, Motilal Oswal AMC.

All the equity-oriented mutual fund categories received net inflows in June with the flexi-cap funds category being the biggest beneficiary with a net inflow of 2,512 crore. This was followed by the multi-cap fund that witnessed 2,130 crore net infusion.

Apart from equity, gold exchange traded funds (ETFs) experienced a net inflow of 135 crore in the month under review.

However, the debt segment saw a net outflow of 92,247 crore in June, as compared to a net withdrawal of Rs 32,722 crore in the preceding month.

On the negative flows in debt schemes, N S Venkatesh, Chief Executive, AMFI said: “Quarter-end phenomena is playing out where corporates redeem their debt investments for advance tax payments and banks wanting to avoid capital charge enforced by RBI."

Overall, the mutual fund industry registered a net outflow of 69,853 crore last month, as compared to a net pull out of 7,532 crore in May.

The outflow pulled down the average assets under management (AUM) of the industry to 36.98 lakh crore at the end of June, from 37.37 lakh crore at May-end.

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