Equity mutual fund inflows rose by 17%, touched all-time high of Rs 40,600 crore in June: AMFI data

The contribution of systematic investment plans (SIP) touched an all-time high of 21,262 crore in June, compared to Rs 20,904 crore in May and Rs 20,371.47 crore in April.

Higher inflows into equity mutual funds were driven by a surge in benchmark equity market indices. The Sensex and the Nifty rose around seven per cent each in June as the Lok Sabha-related election uncertainty settled. In the first quarter ending June 30, total net inflows into equity mutual funds stood at Rs 94,222.28 crore.

Among equity mutual fund schemes, sectoral and thematic funds received the highest net inflows of Rs 22,351.69 crore, followed by Rs 3,058.81 crore in flexi cap funds in June. Inflows into small-cap funds declined to Rs 2,263.47 crore, compared to Rs 2,724.67 crore in May. Mid-cap equity schemes witnessed inflows of Rs 2,527.84 crore, compared to 2,605.7 crore. Inflows into large-cap funds increased to Rs 970.49 crore in June, as against Rs 663.09 crore in the previous month.

The debt oriented mutual fund schemes saw net outflows of Rs 1,07,357.62 crore, compared to inflows of Rs 42,294.99 crore. Outflows in June were on account of higher redemption by corporates to meet first quarter advance tax requirement.

While liquid funds saw outflows of Rs 80,354.03 crore, outflows from overnight funds stood at Rs 25,142.72 crore. On the other hand, money market funds witnessed inflows of Rs 9,590.28 crore.

Inflows into hybrid funds dropped 50 per cent to Rs 8,854.74 crore in June from Rs 17,990.67 crore in May, data showed. Net flows into multi-asset allocation funds were Rs 3,453.12 crore and Rs 3,836.58 crore in arbitrage funds.

Inflows into gold exchange traded-fund (ETF) stood at Rs 726.16 crore, as against Rs 827.43 crore in May.

During June, 55.13 crore new SIPs were registered. The closing balance of SIP accounts stood at Rs 8.98 crore.

Commenting on the number, Tata Asset Management’s Chief Business Officer Anand Vardarajan said June was a watershed month in the mutual fund industry with the AUM number hitting Rs 60 lakh crore for the first time. Ten years ago, in 2014, the AUM number used to be Rs 10 lakh crore.

“We have crossed Rs 60 lakh crore for the first time as an industry to close at Rs 61.3 lakh crore. It is also important to note that exactly six months ago we were at Rs 51 lakh crore. The addition in 6 months is equal to what we were as an industry 10 years back,” he said.

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