Despite stock market volatility in June, net inflows into equity mutual funds during the month jumped 26% over May to nearly Rs 29,000 crore as investors pumped money into mid- and small-cap funds ahead of other types of schemes.Total flows through the SIP route also jumped to nearly Rs 31,800 crore, the highest figure in three months, data released by fund industry trade body Amfi showed. The highest total monthly flow over SIP route of Rs 32,087 crore was recorded in March this year.
Highest level in 3 months
Net inflows into equity funds in June this year was the 64th consecutive month of positive inflows, starting in March 2021, Amphi said in a statement.According to Venkat Chalasani, CEO, Amvi, the June data is a sign of growing investor confidence and growing adoption of disciplined long-term investing through the route of mutual funds.Retail assets under management, which includes the total value of assets under equity, hybrid and solution-oriented plans, stood at Rs 49.4 lakh crore, up from Rs 47.9 lakh crore in May, June data showed.During the month, the debt category saw a net outflow of Rs 1.1 lakh crore, as quarter-end considerations by companies, such as advance tax payments, prompted those entities to withdraw money from overnight, liquid and ultra-short funds, industry players said.
On an overall level, the fund industry’s net assets under management in June stood at Rs 82.2 lakh crore, up slightly from Rs 81.6 lakh crore in May.Mid-cap funds recorded a net inflow of Rs 6,090 crore while the corresponding figures for small and flexible cap funds stood at Rs 5,602 crore and Rs 5,231 crore respectively.“Investors were not fleeing stocks, rather they were moving from diversified/value mandates to direct bets on mid-cap and small-cap during the (market) downturn,” said Viraj Gandhi, CEO of SAMCO Mutual Fund.June data also showed strong inflows into gold ETFs, with net inflow at Rs 3,443 crore, compared to net outflow of Rs 725 crore in the previous month.
