equity mf inflows: Equity mutual fund inflow at 10-month low, SIP contribution at record high – Blue Barrows

At a time when foreign institutional investors (FPIs) have started to repose faith in the Indian stock market, mutual fund investors are slowing down their pace. Data released by the Association of Mutual Funds in India (AMFI) shows that mutual fund inflows were at a 10-month low of Rs 6,100 crore in August.

Arun Kumar, Head of Research, FundsIndia, said there is usually a psychological tendency amongst domestic investors to book profits near all-time highs, especially when the markets have corrected post-hitting similar levels in the recent past, which is getting reflected in the lower quantum of inflows.

However, the monthly SIP contribution stood at Rs 12,693.45 crore, which is an all-time high figure.

The number of SIP accounts stood at an all-time high in August 2022 at 5.71 crore, crossing the June 2022 high of 5.61 crore. The SIP AUM at the end of August 2022 stood at Rs 6.39 lakh crore, also a record high.

New SIPs registered during August 2022 stood at 21.13 lakh.

The mutual fund industry’s net AUM touched an all-time high of Rs 39.33 lakh crore last month.

“Monthly SIP contribution, SIP AUM, SIP folios, overall mutual fund folios, and AUMs, all at an all-time high coupled with continued positive flows in most categories of mutual fund schemes, signify rising and informed investment preference towards mutual funds. Investors continue to stay fully invested and also adhere to goal-based investing,” said AMFI CEO N S Venkatesh.

Retail participation as a share of overall MF industry AUM at more than 50 per cent signifies continued interest in mutual funds, he said.

At the end of August, the total number of mutual fund folios rose 26 per cent YoY to an all-time high of 13.64 crore.

“Flexicap funds, large and midcap, midcap and smallcap funds witnessed the largest inflows amongst equity categories. We’ve also witnessed multiple fund launches during the month, given SEBI’s lift on the ban around this,” said Kavitha Krishnan, Senior Analyst – Manager Research, Morningstar India.

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