New Delhi. Equity mutual fund schemes received a net inflow of Rs 22,583 crore in July, driven by strong inflows into new fund offerings (NFOs). This is the fifth consecutive month amid a rally in the stock markets, while investment inflows into equity mutual funds have been positive. This information has been received from the data of Association of Mutual Funds in India (Amfi).
Earlier in June, the net investment in equity mutual funds stood at Rs 5,988 crore. Earlier in May, there was a net investment of Rs 10,083 crore in equity schemes, Rs 3,437 crore in April and Rs 9,115 crore in March. At the same time, before March, there was a continuous withdrawal from equity schemes during July, 2020 to February, 2021.
The assets under management (AUM) of the mutual fund industry touched an all-time high of Rs 35.32 lakh crore at the end of July, from Rs 33.67 lakh crore at the end of June, driven by good inflows into equity schemes.
According to the data, in July, investments of Rs 22,583.52 crore came in equity and equity-linked continuous open schemes. Barring equity linked savings schemes (ELSS) and value funds, all equity schemes saw investments in July. However, there was a withdrawal of Rs 512 crore from ELSS and Rs 462 crore from Value Fund during the month.
Kavita Krishnan, Senior Analyst-Manager Research, Morningstar India, said the rally in the market and positive investor response to NFOs has boosted investment inflows. Anand Dalmiya, Co-Founder, Fisdom said, “The bullish impact of the equity capital market is visible in the form of investments in equity mutual funds. Good investments are coming in especially in the categories of largecap and flexicap.”
Arun Kumar, Head of Research, FundsIndia, said last year, due to low expenses, a lot of investors have made good savings. Now they are back in the market. “Reducing the impact of the second wave and good returns from stocks in recent times and stability in the market have boosted investor confidence,” he said. (agency)