In August, net investor inflows in equity MFs stood at a staggering Rs. 20000 crore while the total assets under management of the mutual fund industry crossed Rs 20,00,000 crore mark. This is the highest ever monthly inflow in a month in equity segment and also asset under management figure for the domestic AUM industry.
The heightened volatility and reduction in stock prices in the month of August prompted investors to increase their allocation in equity. The record inflow also firms the belief that the industry is going through an uptrend owing to an increase in financial savings as well as decreasing appeal of conventional saving or investment instruments.
Diversified equity funds registered net flows amounting to Rs. 19,515 crore while tax-saving equity schemes garnered a total of Rs. 847 crore. The AUM increased from Rs. 19.96 lakh crore in July to Rs 20.6 lakh crore in August.
In August net buying by MFs was approximately Rs. 16000 crore even when FIIs withdrew over Rs. 10000 crore. As of now there are as many as 15 million SIPs that are running which are mostly equity oriented. And the monthly flows in them stands at Rs. 5000 crore.