Equity mutual funds record inflows worth Rs 8,666 crore in August

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Inflows into India’s equity mutual funds witnessed net inflows for the sixth straight month, industry data showed, as a soaring stock market and low-interest rates drove confidence among investors despite warnings of a potential third wave.

The net equity inflow for August stood at Rs 8,666 crore with a staggering investment in the Flexi-cap category. At the same time, the liquid fund outflow stood at Rs 714.1 crore against the inflows of Rs 31,740 crore.

Such funds had reported a record net inflows of Rs 22,583 crore in July on huge investments in the Flexi-cap category, data from the Association of Mutual Funds in India showed on Wednesday.

Equity schemes saw a net inflow of Rs 5,988 crore in June, Rs 10,083 crore in May, Rs 3,437 crore in April and Rs 9,115 crore in March. Prior to this, equity schemes had consistently witnessed outflows for eight months from July 2020 to February 2021.

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The inflow pushed assets under management (AUM) of the mutual fund industry to an all-time high of Rs 36.6 lakh crore at August-end from Rs 35.32 lakh crore at July-end.

Data showed inflows into equity and equity-linked open-ended schemes were at Rs 8,666.68 crore in August. The Flexi-cap segment saw an inflow of Rs 4,741 crore. And the focused funds witnessed a net investment of Rs 3,073 crore. Sectoral funds reported a net infusion of Rs 1,885 crores.

The schemes that witnessed outflows included small-cap, multi-cap, and large-cap funds. Equity-linked savings schemes and value funds also reported outflows.

Investors took interest in hybrid funds as they infused liquidity worth Rs 18,706 crore in them. This included Rs 16,571 crore in arbitrage funds.

Further, gold exchange-traded funds (ETFs) witnessed a net inflow of Rs 24 crore last month, compared to a net outflow of Rs 61.5 crore in July. In addition, investors infused a net sum of Rs 1,074 crore in debt mutual funds in the month under review compared to a net Rs 73,964 crore in July.

Overall, the mutual fund industry witnessed a net inflow of Rs 32,976 crore across all segments last month, compared to an inflow of Rs 1.14 lakh crore in July.

(With inputs from PTI)

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