Riding on the best quarterly performance by stock markets in 17 years, equity-oriented mutual funds saw a net inflow of Rs 1,500 crore in June this year even as growth of industry's average assets for the month decreased, a Crisil report says.
"Continued retail interest in equity markets saw equity-oriented funds witnessing net inflows of Rs 1,500 crore in June, on the back of Indian equity markets' best quarterly performance in 17 years with the S&P CNX Nifty gaining 42 per cent," Crisil FundServices Director Krishnan Sitaraman said.
The average assets under management rose to an all-time high of Rs 6.7 lakh crore in June driven mainly by increased interest in equity funds.
However, the growth in average assets under management (AUM) for mutual funds was only 5 per cent in June against 16 per cent witnessed in May.
Meanwhile, outflows from debt schemes in the last few days of June saw the industry's AUM at the end of the month drop by 12 per cent to Rs 5.8 lakh crore, the report said.
Debt funds saw outflows of over Rs 85,000 crore in June, but continued to dominate the AUM spectrum with about 70 per cent industry asset share.
The outflows from debt funds were mainly due to advance tax outflows (of over Rs 20,000 crore) and banks pruning mutual fund investments to meet their quarter end balance sheet requirements on capital adequacy, the report added.
