Equity Fund Inflows Witness 12% Decline To Rs 7,626 Crore In July

The data released from Association of Mutual Funds in India (AMFI) on August 9 showed that open-ended mutual funds registered a fall of 12% in funds flow to Rs 7,626 crore in July as large cap peers continue to deal with outflows.

Investors in India continue to invest in mid-cap and small cap segments for the last few years. Earlier this year these funds faced net outflows in February and September 2021.

Amid the marginal dip in equity fund investments, inflows stayed in positive territory for 29th month consecutively in July as bull run continued in the equity markets. It is worth noting that in July this year, BSE Sensex surged 2.80% while NSE Nifty 50 rose 2.94%.

Meanwhile, in fixed income market, inflows in the debt funds soared more than four times to Rs 61,440 crore in July. Money Market Funds and liquid witnessed net inflows at 8608 crore and Rs 51,938 crore, according to reports.

It is worth noting that earlier this year in June, inflows in the open-ended equity funds rallied 167% to Rs 8637 crore as stock markets witnessed rally.

Amid the rise in debt-fund-bound investments, open-ended mutual funds witnessed net inflows of Rs 82,467 crore, a 63-fold spike over net inflows of Rs 1,296 crore in June, according to a report in Moneycontrol.

The enture assets under management (AUM) of open-ended mutual funds surged 4.50% to Rs 46.11 trillion in July from Rs 44,12 trillion in the previous month.