Equity mutual fund inflows plunge sharply to Rs 8,700 crore in August

Equity mutual fund inflows plunge sharply to Rs 8,700 crore in August

NEW DELHI: Inflows to new fund offers (NFO) continued in August, supporting the net inflow to mutual fund schemes. However, the deposit was far less than the previous month.

Amfi data released for the month of August said investors poured in a net Rs 8,666.68 crore in equity mutual fund schemes against previous month’s deposit of Rs 22,583.52 crore. Equity mutual funds saw a total inflow of Rs 33,668.76 crore and outflow of Rs 25,002.08 crore.

Flexicap funds saw the biggest inflow at Rs 4,741.22 crore, while focussed funds drew investments of more than Rs 3,000 crore. Sectoral and thematic funds were also in demand during the month, getting inflow of more than 1,000 crore. ELSS and value funds were among those that saw outlaws. NFOs across categories mobilised Rs 23,668 crore.

Thanks to the inflows, domestic institutional investors, which mostly comprise mutual fund managers, bought a net Rs 6894.7 crore worth of stocks, against Rs 18,394.2 crore for the previou month. FIIs were net sellers in June and withdrew Rs 2083 crore in the equity markets as per NSDL data.

Debt mutual fund schemes also saw net inflows worth Rs 1,074.44 compared to Rs 73,694.04 crore in July. Floater funds attracted the largest chunk of investment followed by corporate bond funds. Overnight and low duration funds saw big withdrawals.

The total mutual fund AUM as on August 31 rose to an all-time high level of Rs 36,59,445.04 crore, thanks to net inflow of Rs 32,976.21 crore. Mark to market gains also supported the AUM rise. BSE Sensex climbed 9.44 per cent during June, while BSE Midcap advanced 3.32 per cent and BSE Smallcap added 0.50 per cent.

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