Equity mutual funds inflows rise to Rs 22,583 crore in July

Equity and debt mutual funds saw a huge boost in inflows in the month of July. Both the segments received big inflows in almost all categories. Equity mutual funds saw net inflows worth Rs 22,583.52 crore in the month of July, compared to a minimal Rs 5,988.17 crore inflows in June. These inflows were spearheaded by flexi cap funds and sectoral funds. Both these categories have been seeing a lot of investor interest in the past couple of months.

Among the equity space, ELSS and value funds continued to see outflows in the month of July as well. Multi cap fund inflows have also gone down from Rs 209 crore in June to Rs 164 crore in July. Investments into small cap funds has increased from the last month. Small cap funds saw net inflows worth Rs 1,233.90 crore in July. Here’s a look at the data:

Even though, debt funds almost doubled the inflows this month, categories like ultra short duration and corporate bond funds saw redemptions in the month of July. Floater funds have been enjoying their spot under the sun of late. Many investors have been investing in these schemes and it is evident from the inflow numbers as well. These schemes saw net inflows of Rs 7,423 crore in July. Biggest inflows in the debt category came from liquid funds and money market funds. Here’s a look at the data:

Hybrid funds also saw slight rise in inflows this month. With a total net inflow of Rs 19,481.07 crore in July, hybrid funds continued a good show. However, multi asset allocation funds saw outflows in the month of July. Arbitrage and aggressive hybrid funds gained the maximum inflows in July. Index funds and ETFs also continued their inflow streak, but due to the drop in gold prices, Gold ETFs saw outflows this month. Here’s the data:

“This month we seem to have seen record netflows into equity mutual funds considering nearly 27,000 crs inflows into equity and hybrid (non arbitrage) schemes. Over 50% of this is attributable to NFOs as AMCs try to complete their range as per SEBI scheme categorization norms and some more through thematic launches. Momentum continues in passive products albeit led mainly by overseas funds and funds of funds investing overseas. It is heartening to know that after a long hiatus we have seen over 3000 crs net positive flows in balanced advantage and equity hybrid funds which is the right category to allocate to at this juncture in the markets from a risk averse investors perspective,” Aashish P Somaiyaa, Chief Executive Officer – White Oak Capital.