Thanks to the fresh inflow in ultra-short duration funds and money market funds, total inflow to the total debt funds witnessed a significant increase in July as it rises to ₹4,930 crore. The corresponding figure in June was in the negative territory i.e., an outflow of ₹92,247 crore.
Sample this. Ultra-short debt funds saw an inflow of ₹3,728 crore this month against an outflow of ₹10,058 crore last month. At the same time, inflow into money market instruments rose to ₹2,638 crore in July against the outflow of ₹8,126 crore in the previous month.
Barring these two categories, other debt mutual funds such as medium duration and long duration funds didn’t see a noticeable interest among investors.
On the contrary, equity funds saw a significant fall of 43 percent in its total allocation. Read this article for more details.
While total inflow in equity mutual funds stood at ₹15,498 crore last month, it fell to ₹8,898 crore in the month ending July 31, according to the AMFI (Association of Mutual Funds in India) data released recently.
Mutual Fund category | June data ( ₹crore) | July data ( ₹crore) |
Ultra-short debt | -10,057.99 | 3,728.02 |
Money market funds | -8,126.12 | 2,638.75 |
Index funds | 7,301.1 | 6,779.23 |
Other ETFs | 5,358.56 | 7,635.03 |
Gold ETFs | 134.83 | - 456 |
(Source: AMFI)
There is no denying the fact that market volatility had a spell on the mutual fund sector with passive funds witnessing a decline in their inflow in July. Inflow to index funds stood at ₹6,779 crore in July against the corresponding figure of ₹7,301 crore in the month of June.
Gold ETFs saw an outflow at ₹456 crore this month against an inflow of ₹134.83 crore last month.
At the same time, contribution to other exchange traded funds (ETFs) rose to ₹7,635 crore against ₹5,358 crore in June.
Even balanced advantage funds, despite their unique character that make them apt for volatile markets, witnessed a decline in their allocation. It fell to an inflow of nearly ₹554 crore in the month of July, whereas the corresponding figure for June stood at ₹1,799 crore.