scorecardresearchInflow to equity mutual funds spikes 165% in August, highest in past five

Inflow to equity mutual funds spikes 165% in August, highest in past five months

Updated: 11 Sep 2023, 01:14 PM IST

Equity schemes receive maximum inflow in the month of August. Previously, inflow of this magnitude was seen in the last financial year

In hybrid schemes, inflow stood at  <span class='webrupee'>₹</span>17,081 crore against  <span class='webrupee'>₹</span>12,420 crore in the previous

In hybrid schemes, inflow stood at 17,081 crore against 12,420 crore in the previous

Inflows to equity mutual funds rose in the month of August to 20,245 crore, indicating an increase of 165 percent over July, shows the AMFI data. In this financial year, this is the first month when inflow to mutual funds was higher than 10,000 crore.

Conversely, there was a redemption among debt-oriented schemes to the tune of 25,872 crore against 61,440 crore of inflow in the month of July, the AMFI data reveals.

In hybrid schemes, inflows stood at 17,081 crore against 12,420 crore in the previous month.

Mutual Fund folios reached an all-time high of 15.42 crore in August as compared to 15.14 crore for the month of July 2023.

SIP contribution

The SIP contribution for August reached an all-time high of 15,813 crore in August. The number of SIP accounts stood at highest ever at 6,96,85,946 for August as compared to 6,80,52,826 in July 2023.

The SIP AUM stood at 8,47,130.87 for August 2023 as compared to 8,32,274.61 crores for July 2023.

The number of new SIPs registered in August 2023 were 35,91,650 highest ever.

“We saw a lot of volatility in August. The broader market indices rose, fell and rose again during the month. At the same time, macros are doing good, quarterly results of companies for the first quarter were better than the market expectations, FII inflows also increased. So, overall investors are bullish on equity,” says Sridharan S., founder of Wallet Wealth.  

Month          Equity inflow ( crore)
April              6,480
May                3,240
June             8,637
July              7,625
Aug                 20,245

(Source: AMFI)

There was a significant increase in the inflow of index mutual funds, gold ETFs and other ETFs also. As we can see in the table below, inflows to index mutual funds spiked by 68 percent to 1,958 crore and those to gold ETFs rose by 1.25 times to 1,028 crore.

Category      Aug ( crore)July ( crore)
Index               1,985.68 1,179.26
Gold ETF        1,028.06456
Other ETFs    1,892.88-353.2

During the month of August, 14 new fund offers were launched for investors that collectively raised 7,531 crore including 188 crore for a closed ended scheme.

The new funds included one multi cap fund, five sectoral funds, one flexi cap, one dynamic asset allocation, three index funds and three other ETFs.

While commenting on the strong performance of the mutual fund industry in India, NS Venkatesh, CEO, AMFI says, “The record SIP contribution of 15,813.54 crores is a testimony of the Indian Investors long term approach to building wealth by investing through small ticket sized SIPs. Economic growth is expected to improve, and the markets are expected to grow. The overall outlook for the mutual fund industry in India continues to be positive. The industry’s focus on investor education and protecting the interests of investors community has bolstered investor confidence in the category."


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First Published: 11 Sep 2023, 01:14 PM IST