Latest mutual funds data reveals last month’s retail optimism on Indian shares. Equity-oriented schemes drew a net ₹29,329 crore in August, up about 19% from July, according to the Association of Mutual Funds in India. Flows through systematic investment plans also hit a monthly record ₹32,297 crore.
This is a sign of disciplined investing by small savers whose confidence in eventual gains doesn’t seem to have weakened. Small-cap funds, in particular, found favour, receiving a chunky ₹7,973 crore, reflecting not just a growing risk appetite but a pursuit of segments with prospects of high growth.
It’s worth recalling that foreign investors returned to Indian stocks in big numbers this July and August after months of net pullouts. A resilient outlook for India’s economy and corporate profit growth could explain that flow reversal.
Robust automobile sales, high GST revenues and surprise strength on other high-frequency indicators lent credibility to India’s 7.8% GDP growth reading in April-June, though arguments over the math persist. Business earnings have been strong.
Retail investors may have had good reason not to get flustered by an all-but-stagnant stock market.
