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Time of India
2 days ago
- Business
- Time of India
India's mutual fund industry sees record inflows in July: Equity and debt schemes thrive
Mumbai: India's mutual fund industry had a blockbuster July as equity and debt schemes attracted strong flows. Equity mutual funds raked in ₹42,702 crore in July - the highest contribution in a month - boosted by strong appetite for midcap, smallcap and new sectoral fund offerings. Systematic Investment Plan (SIP) collections were also at a record ₹28,464 crore compared with June's ₹27,269 crore, while debt funds saw flows surge to ₹1.07 lakh crore, led by investor interest in liquid and money market funds. The mutual fund industry's average AUM rose 2.6% to ₹76.74 lakh core from ₹74.79 lakh crore in June. Money pumped into equity schemes in July - the 53rd straight month of net inflows - surged 81% from June's ₹23,587 crore. "High returns from equities over the last three and five-year periods, low interest rates on bank deposits and high HNI appetite for diversified portfolios beyond direct equity are driving strong flows into equity mutual funds," said A Balasubramanian, MD and CEO, Aditya Birla SL Mutual Fund. Best MF to invest Looking for the best mutual funds to invest? Here are our recommendations. View Details » In equity schemes, investors allocated money across categories, with the highest amounts going into sectoral and thematic funds. They got ₹9,426 crore in July compared with a mere ₹475 crore in the previous month, buoyed by new fund offers (NFOs) from large AMCs such as Axis Services Opportunities Fund, HDFC Innovation Fund and ICICI Prudential Active Momentum Fund. Investors put ₹7,654 crore into flexicap funds, up from ₹5,733 crore in June. This was followed by large flows into smallcap funds, which got ₹6,484 crore against ₹4,025 crore in June, and midcap funds, which got ₹5,182 crore against ₹3,754 crore in the previous month. In the fixed-income space, liquid, money market and overnight funds had inflows of ₹39,355 crore, ₹45,474 crore and ₹8,866 crore, respectively largely due to NFOs from Jio BlackRock MF in these categories. Agencies Fixed-income Portfolios As institutional investors look to earn slightly more on their fixed-income portfolios, they are allocating more to money market funds over liquid funds, which have a marginally higher maturity than money market funds. "Fixed income is changing colour, with liquid funds seeing strong competition from money market funds," said Anand Varadarajan, chief business officer, Tata Mutual Fund. The hybrid category that invests in a mix of two or more assets, saw net inflows of Rs 20,879 crore, lower than the previous month's Rs 23,223 crore. "The dip in hybrid fund flows hints that investors are prioritising either aggressive equity plays or safe debt alternatives," said Ankur Punj, MD and national head, Equirus Wealth. Flows into arbitrage funds halved to Rs 7,296 crore from Rs 15,585 crore in the previous month, as spreads narrowed due to falling interest rates, putting pressure on returns. On the other hand, multi-asset allocation funds that invest in a mix of equity, debt and gold saw inflows rise 93% to Rs 6,197 crore from Rs 3,210 crore in June, backed by a Franklin Templeton NFO. Balanced advantage funds saw inflows of Rs 2,611 crore compared with Rs 1,886 crore in the previous month.
The Hindu
09-05-2025
- Business
- The Hindu
Equity MF inflows dips to a 12-month low of ₹24,269.26 crore on market volatility
Tariff induced volatility in Indian markets led to inflows into equity mutual funds falling to a 12 month low ₹24,269 crore in April. Flows into this asset class have been seeing a continuous dip for four consecutive months now, according to data from Association of Mutual Funds in India (AMFI). 'Investor sentiments are fragile as one-year rolling returns in the markets are flat or marginally positive,' according to Sunil Jain, Vice-President of Elara Capital. Funds mobilised through new schemes plummeted to as low as ₹171 crore , which was just about 7% of what it was in February. Although the overall flows in equity mutual funds dipped, monthly systematic investment plan (SIP) contributions increased to an all-time high of ₹26,632 crore in the month-under-review. 'Markets have become more broad based and the sectoral impact of tariffs has become more difficult to ascertain, mainstream categories are making a come back,' according to Anand Varadarajan, Chief Business Officer at Tata Asset Management Company. 'Not surprisingly, diversified categories like flexicap are witnessing greater interest,' he added. Inflow into sectoral or thematic funds dipped to ₹170 crore in March, and restored to nearly ₹2,000 crore, however, staying lower than January inflow of about ₹5,000 crore. A continuing trend of reducing lump-sum inflows might increase worries, but there is no panic at the moment, Mr. Jain said. Investors also took to safer and more diversified funds like passive and index funds. Mutual fund houses usually try to make returns higher than that given by the benchmark returns, for their clients. The choice of allocation of companies and stock picking is in the hands of the fund managers. With passive funds or index funds, the returns follow that of the index making it less riskier. Inflows into these funds increased over 4% to ₹11.9 lakh crore. Exchange Traded Funds (ETFs) which are funds that trade like stocks in the exchange and have a diversified portfolio of companies saw record inflows of ₹19,056 crore in April.
