Equity MF inflows ease 9% to Rs 37,000 cr in July, debt funds fetch Rs 1.19 lakh cr

Equity mutual fund (MF) inflows decreased by 9% in July, falling to Rs 37,113 crore from Rs 40,608 crore in June. Inflows into sectoral/thematic funds also fell by 18%, totaling Rs 18,386 crore. Meanwhile, debt MFs saw an inflow of Rs 1.19 lakh crore in July, reversing the outflow of Rs 1.07 lakh crore recorded in June.

Among the equity MFs, multicap funds received the second-highest inflows of Rs 7,084 crore in July. All categories except for ELSS and focused funds continued to receive inflows last month.

Both ELSS and focused funds have experienced outflows for four consecutive months. In July, ELSS funds saw an outflow of Rs 637 crore, while focused funds experienced an outflow of Rs 620 crore.

Smallcap funds attracted inflows of Rs 2,109 crore in July, while dividend yield funds received the lowest inflows of Rs 630 crore, up from Rs 520 crore in June.

Debt mutual funds experienced inflows of Rs 1.19 lakh crore in July, with the highest inflows in liquid funds, which saw Rs 70,060 crore compared to an outflow of Rs 80,354 crore in June.

Among debt mutual funds, 12 out of 16 categories received inflows. Money market funds attracted the second-highest inflows of Rs 28,738 crore in July. However, credit risk funds experienced the highest outflow, totaling Rs 542 crore, compared to an outflow of Rs 478 crore in June.

Total inflows into hybrid fund categories surged by 97% to Rs 17,436 crore in July, compared to Rs 8,854 crore in June. All hybrid categories received inflows, with Arbitrage funds leading at Rs 11,014 crore. Multi-asset allocation funds attracted Rs 3,125 crore in July.

The balanced hybrid/aggressive hybrid and conservative hybrid funds received inflows of Rs 195 crore and Rs 25 crore, respectively.

Net inflows in the ‘others’ category, which includes Index Funds and ETFs, rose slightly by 1% to Rs 14,777 crore in July, up from Rs 14,601 crore in June. Index Funds saw the highest inflow of Rs 8,019 crore in July, compared to Rs 5,071 crore in June.

Other ETFs received Rs 5,787 crore, while Gold ETFs attracted Rs 1,337 crore. However, Funds of Funds investing overseas recorded an outflow of Rs 366 crore.

The total assets under management (AUM) of MFs rose 6% and stood at Rs 64.69 lakh crore in July against Rs 60.89 lakh crore in June.

Around 15 open-ended NFOs were floated in July, which together mobilised Rs 16,565 crore with the highest contribution by sectoral/thematic funds of Rs 9,790 crore. Only two sectoral funds were launched in July.