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Equity funds witnessed lower inflows in the month of June

Equity mutual funds (MFs) witnessed lower inflows of Rs 5,988 crore in the month of June, compared with inflow of Rs 10,082.9 crore in May, according to data from the AMFI. Net inflow for the MF industry stood at Rs 15,320 crore in June as compared to an outflow of Rs 38,602 crore in May.

Hybrid funds saw the highest net inflows in June at over Rs 12,361 crore compared to April and May for Q1 of FY 22. Debt schemes got Rs 3,566 crore during the month. Index and ETF funds got inflows of Rs 5,850 crore crore.

NS Venkatesh, Chief Executive, AMFI, said, “The mutual fund industry is witnessing sharp rise in the number of new investors, which has doubled in last four years to 2.39 crores unique investors. Many new investors are seen embracing mutual funds through the SIP route, over other traditional investment avenues.”

“The MF Industry has progressed quite sharply in the first quarter of FY22, be it on overall net flows, including equity, debt or hybrid, which have been positive, or on new SIPs registered which have seen sharp rise. The month of June 2021 reported record 21.29 lakh new SIP registrations. SIP AUM is now at an all-time high, forming almost 15 per cent of total industry AUMs. “The number of SIP accounts breached the four-crore mark for the first time ever, is reflective of continued retail investor confidence in the mutual fund asset class,” Venkatesh said.

Although investors continue to invest in pure equity schemes resulting in positive net sales of almost Rs 6000 crore, this is slightly lower than last month due to higher redemptions, analysts said. For now, the trend surely is in favour of Indian equities by domestic investors.

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