India's equity MF inflows ease off record high levels in July, shows data

Inflows into India's equity mutual funds moderated in July to Rs 37,113 crores ($4.42 billion), easing off record high levels hit in the previous month, data from the Association of Mutual Funds in India (AMFI) showed on Friday.
 

The sequential 9.4 per cent drop in July from the previous month was due to profit booking at record high levels, analysts said.
 

Inflows in July are the second highest on record and positive for domestic equities from a liquidity perspective, said Venkat Chalasani, CEO of AMFI.
 

Inflows into large-cap mutual funds moderated 31 per cent to Rs 670 crores.
 

 

Inflows into mid-caps fell 35 per cent to Rs 1,644 crores, while small-cap equity mutual fund inflows were little changed at 21.09 billion rupees in July.
 

Multi-cap or diversified equity funds, which invest across different stocks to minimise the risk of exposure to a few stocks, reported a 50.5 per cent jump in inflows to Rs 7,085 crores.
 

Sectoral or thematic funds saw the highest inflows among equity mutual fund schemes for the fourth straight month at Rs 22,452 crores , more than 50 per cent of total inflows into equity-oriented schemes.
 

Equity mutual funds reported net inflows aggregating to Rs 6.36 trillion  from domestic investors since February 2021, well above net foreign inflows of Rs 65,726 crores into mutual funds over the same period.
 

Indian mutual funds have reported inflows every month since February 2021.
 

The country's benchmark NSE Nifty 50 has risen about 72 per cent over the last 41 months, helped by sustained mutual fund inflows, steady earnings and the fastest macroeconomic growth among emerging economies.
 

The stock benchmarks Nifty 50 and BSE Sensex rose about 4 per cent and 3.5 per cent, respectively in July, logging their second best month this year so far.
 

Contributions to systematic investment plans (SIPs) touched a record high of Rs 23,322 crores in July, hitting an all-time high for the thirteenth consecutive month.

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