New Thematic, Multi-Cap Mutual Funds Drive Equity Inflows To Another Record

Inflows into equity mutual funds surged to a fresh record high in June, led by a rise in the inflows of nine new fund-offer schemes in the multi-cap fund and thematic funds.

Equity inflows increased 17% to Rs 40,608.2 crore last month against Rs 34,697 crore in May, according to data released by the Association of Mutual Funds in India on Tuesday.

Net flows recorded an outflow of Rs 43,636.5 against an inflow of Rs 1.11 lakh crore in May, as inflows into debt funds took a hit.

Small-cap funds logged inflows of Rs 2,263.5 crore during the month under review, compared to Rs 2,724.7 crore last month. Mid-cap schemes attracted investments of Rs 2,527.84 crore, against Rs 2,605.7 crore in May.

Inflows into large-cap funds rose to Rs 970.4 crore during May, compared with Rs 663.1 crore in the previous month. Multi-cap funds had inflows of Rs 4,708.57 crore, against Rs 2,644.9 crore in the previous month.

Nine new fund offer schemes introduced in the thematic and sectoral segments contributed Rs 12,974 crore, making a 58% contribution to the fund's inflows. Meanwhile, the one new multi-cap fund raked in Rs 1,051 crore during June.

Liquid funds recorded an outflow of Rs 80,354.03 crore during the month under review, as opposed to the around Rs 25,873.4 crore inflow in May.

Credit-risk funds saw outflows of Rs 478.40 crore in May, as opposed to Rs 540.5 crore being pulled out of the schemes in May.

Total outflow into debt-oriented funds stood at approximately Rs 1.07 lakh crore in June, against an inflow of Rs 42,295 crore in the month before.

Overall outflows into mutual funds stood at Rs 43,636.5 crore during June, compared with an inflow of Rs 1.11 lakh crore. Net assets under management increased to Rs 61.2 lakh crore in June from Rs 58.9 lakh crore in May. Having crossed Rs 50 lakh crore in December 2023, the next Rs 10 lakh crore journey of the net AUM to the Rs 60 lakh crore mark has been achieved in just six months. 

Overall, the systematic investment plan continued to reach new peaks with Rs 21,262 crore of inflows in June, as against a contribution of Rs 20,904 crore in the previous month.

The net SIP inflow during May stood at Rs 9,226 crore, less than half the gross inflows. For April, the net SIP inflow stood at Rs 8,660 crore.

This trend is not a concern, as this data has been there forever, according to Kalpen Parekh, managing director and chief executive officer of DSP Mutual Fund, on NDTV Profit’s The Mutual Fund Show. “When you see the net numbers close to Rs 8,000-9,000 crore, there are some old SIPs that are completing their tenure.”