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Mutual Funds in July: Equity funds see outflows after record highs, touches Rs 37,113 cr.

Mutual Funds: The latest data by the Association of Mutual Funds of India (AMFI) showed that open-ended equity mutual fund inflows dropped by almost 9% and touched Rs 37,113.39 crore in July. The drop was due to fall in investments in investments in large-cap and mid-cap funds.

Net assets under management (AUM) of the mutual fund industry rose to hit Rs 64,96,653.14 lakh crore in July, data showed.  In June, inflows into equity mutual funds touched Rs 40,608.19 crore in June, which was a fresh high. The net inflow into equity mutual funds had surged by 83.42% to Rs 34,697 crore in May.

July, compared to Rs 4,708.57 crore in the previous month. Liquid funds recorded a substantial inflow of Rs 70,060.88 crore in July, contrasting the outflow of around Rs 80,354.03 crore in June. SIP contributions reaching an all-time high of Rs 23,331.75 crores in July 2024.

Sectoral and thematic funds experienced inflows amounting to Rs 18,386.3 crore, showcasing a decrease compared to the previous month’s inflow of Rs 22,352 crore. Correspondingly, the total assets under management (AUM) saw an increase to Rs 64.9 lakh crore from the Rs 61.16 lakh crore recorded in June.

“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. 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,” said Venkat Chalasani, Chief Executive, AMFI.

In the fixed-income category, debt mutual funds experienced significant net inflows totaling Rs 1,19,587.60 crore in the observed month. Conversely, in June 2024, debt funds reported net outflows amounting to Rs 1,07,357.62 crore.