Small Caps Drive Over Twofold Jump In Equity Fund Inflows In June: AMFI Data

Inflows into equity mutual funds surged more than twofold in June, driven by investments into small-cap schemes.

Net investments into actively managed equity schemes stood at Rs 8,638 crore in June, a jump of 167% from a month earlier, according to data released by the Association of Mutual Funds in India.

SIP contributions remained close to the record level at Rs 14,734 crore. SIP accounts stood at 6.65 crore as of June, up from 6.52 crore in May.

Investments in the small-cap funds stood at Rs 5,472 crore in June as compared with Rs 3,283 crore in May.

Two fund houses—Nippon India Mutual Fund and Tata Mutual Fund—recently closed lumpsum investments in their small-cap funds after they were forced to restrict inflows.

Outflows from large-cap schemes widened to Rs 2,050 crore from Rs 1,362 crore in the previous month.

Liquid funds—which businesses use to store short-term cash—saw outflows during June. Such schemes recorded outflows of Rs 28,546 crore during the month under review against inflows of Rs 45,234 crore in the previous month.

Credit-risk funds witnessed outflows for the third month in a row at Rs 799 crore. These schemes recorded outflows of Rs 290 crore in May.

Overall, all mutual funds across equity and debt recorded a net outflow of Rs 2,022 crore in June, as compared with inflows of Rs 57,420.46 crore in May.

Money market funds saw inflows of Rs 6,827.03 crore in June, as against inflows worth Rs 8,731.06 crore in May.