Inflows into open-ended mutual fund inflows slipped 8.61 per cent to Rs 37,113.39 crore in July after a decline in investments in large-cap and mid-cap funds, according to data released by the Association of Mutual Funds in India (AMFI), the industry trade body for mutual funds on August 9.
In June, inflows into equity mutual funds had surged by 17 per cent to Rs 40,608.19 crore, a record high.
According to AMFI data, inflows into monthly gross systematic investment plan (SIP) hit a fresh record high of Rs 23,332 crore during July compared to Rs 21,262 crore in June.
Venkat Chalasani, chief executive officer of AMFI says the mutual fund industry has demonstrated positive growth with retail investors consistently embracing mutual funds as a reliable investment avenue. It’s evident that mutual funds have become an integral part of retail investors' financial strategies.
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“SIP contributions reaching an all-time high of Rs 23,331.75 crores in July 2024 reflects the growing financial discipline among retail investors, helping them build wealth systematically over time. As we continue to navigate an ever-evolving market landscape, the industry's focus remains on empowering investors and fostering long-term financial well-being,” Chalasani said.
The net assets under management (AUM) of the mutual fund industry rose by 6.23 per cent to hit a record high of Rs 64.97 lakh crore on July 31, 2024. The growth was largely driven by an increase in net inflows into debt-oriented mutual fund schemes.
In July, net AUM of equity mutual funds stood at an all-time high of Rs 29.33 lakh crore, nearly 45 per cent of the industry’s AUM.
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Sectoral/thematic funds gained the highest net inflows of Rs 18,386.35 crore. However, flows were lower compared to net flows of Rs 22,351.69 crore in June, as per AMFI data.
Small cap funds received inflows of Rs 2,109.2 crore compared to Rs 2,263.47 crore in June. In the mid cap funds, the inflows stood at Rs 1,644.22 crore, as against Rs 2,527.84 crore in the previous month.
In the fixed-income category, debt mutual funds saw net inflows of Rs 1,19,587.60 crore during the month, up from Rs 1,07,357.62 crore in the previous month.
In July, short-term liquid funds category received net inflows of Rs 70,060.88 crore, while money market funds saw fresh investments of Rs 28,738.03 crore.
Hitesh Thakkar, acting CEO of ITI Mutual Fund says, “We feel retail investors are now understanding that volatility is part of long-term wealth creation journey. The share of financial assets has been increasing rapidly and within financial assets, mutual fund market share is relatively high”.
“I am sure that mutual fund industry will surpass milestone trillion AUM and 100 million investors in next 3 to 4 years’ time,” he added.
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