Domestic investors keep faith in equity mutual funds despite volatile markets
Open-ended equity schemes witnessed an infusion of ₹9,152 crores in August
Inflows in mutual funds (MFs) through SIPs stood at ₹8,231 crore
In New Delhi, in August, the mutual fund’s asset base was increased to Rs 25.47 Lakh crore. And on the back of robust inflows in equity and liquid schemes a rise of 4 percent as compared with the preceding month. According to the data provided by the Association of Mutual Funds in India (Amfi), a 44 player industry logged assets under management (AUM) of RS 24.53 lakh crore by July- end.
In the month of August, the liquid funds alone witnessed an impressive over Rs 79,000 crore and the mutual fund houses witnessed an overall inflow of 1.20 Lakh crore the previous month, higher than Rs 87,000 crore seen in July. Fund managers attributed the growth in asset base to higher retail participation and robust inflows in equity schemes and liquid funds.
Equity plan close-ended while there was a small outflow of Rs 62 crore and the open-ended equity schemes witnessed an infusion of Rs 9,152 crore and taking total equity inflows to Rs 9,090 crore the previous month and the overall net flow in such schemes stood at Rs 8,092 crore in the month of July.
Among debt-oriented schemes, liquid funds saw an infusion of ₹79,428 crores in last month as compared to ₹45,441 crores, in July. Besides, gold exchange-traded funds saw a total inflow of ₹145 crores against an outflow of ₹17.66 crores.
Retail investors are showing interest in equity mutual funds, for the fourth time in succession, and wanted to be continuously steady by showing maturity despite the uncertain volatile and economic market situation.
The AMFI chief executive officer NS Venkatesh said In equity funds the net inflows largely in all the categories especially in mid-cap funds and small-cap funds as in the equity-linked saving scheme (ELSS) segment which is significantly raising confidence and interest of emerging disciplined tax planning and business.
Speaking on the outlook for September, Venkatesh said that on the equity side, SIPs (systematic investment plans) would witness robust flows and on the debit side, liquid funds may see volatility owing to quarter-end phenomenon.
In the month of august inflows in mutual funds through SIPs stood at Rs 8,231 crore. But in the last month, it was Rs 8,324 crore so comparatively there is a slight fall in the graph.
The mutual fund industry added 4.81 lakh folios where the numbers designated to individual investor accounts, though an investor can have multiple accounts the last month to a total of 8.53 crore.
MFs are investment vehicles made up of a pool of funds collected from a large number of investors.