Record High: Equity Mutual Fund Inflows Surge to Rs 40,600 Crore in June
In a significant milestone for India’s mutual fund industry, equity mutual fund inflows soared to an all-time high of Rs 40,608.19 crore in June, marking a 17% increase from May’s figures, as reported by the Association of Mutual Funds in India (AMFI).
The industry’s net assets under management (AUM) also breached the Rs 60 lakh crore mark for the first time, reaching Rs 61.16 lakh crore by June 30, 2024. This growth was fueled by robust investments in systematic investment plans (SIPs), which hit a record high of Rs 21,262 crore in June, up from Rs 20,904 crore in May.
The surge in equity mutual fund inflows coincided with a bullish trend in benchmark indices like the Sensex and Nifty, both of which saw approximately seven percent gains in June following resolution of uncertainties related to the Lok Sabha elections. Overall, the first quarter of the fiscal year ending June 30 witnessed total net inflows into equity mutual funds amounting to Rs 94,222.28 crore.
Sectoral and thematic funds led the inflows among equity mutual fund categories, attracting Rs 22,351.69 crore, followed by flexi cap funds with Rs 3,058.81 crore. While small-cap funds saw a slight decline to Rs 2,263.47 crore, mid-cap and large-cap funds experienced inflows of Rs 2,527.84 crore and Rs 970.49 crore respectively.
On the other hand, debt-oriented mutual fund schemes faced net outflows amounting to Rs 1,07,357.62 crore, primarily driven by corporates redeeming funds to meet first quarter advance tax obligations. Liquid funds and overnight funds also witnessed significant outflows, while money market funds received inflows of Rs 9,590.28 crore.
Hybrid funds, however, saw a 50% decline in inflows to Rs 8,854.74 crore in June compared to May, while gold exchange traded funds (ETFs) reported inflows of Rs 726.16 crore.
Reflecting on these milestones, Anand Vardarajan, Chief Business Officer of Tata Asset Management, highlighted June as a watershed moment for the mutual fund industry, underscoring the rapid growth from Rs 10 lakh crore AUM a decade ago to the current Rs 61.3 lakh crore. He emphasized the industry’s resilience and growth trajectory despite market fluctuations and economic uncertainties.
