Equity mutual fund inflows up 17% at a record high of US$ 4.87 billion (Rs. 40,608 crore) in June: AMFI

Inflows into India's equity mutual funds surged 17% sequentially to a record high of US$ 4.87 billion (Rs. 40,608 crore) in June, according to data from the Association of Mutual Funds in India (AMFI). Since February 2021, equity mutual funds have seen net inflows of US$ 71.78 billion (Rs. 5.99 trillion) from domestic investors, far exceeding net foreign inflows of US$ 4 billion (Rs. 33,361 crore) over the same period. The benchmark NSE Nifty 50 has risen approximately 65% over the past 40 months, bolstered by sustained mutual fund inflows, steady earnings, and rapid macroeconomic growth. Inflows into large-cap funds increased by 46% to US$ 116.2 million (Rs. 970 crore), while inflows into small-cap and mid-cap funds moderated by 16% and 3%, respectively, amounting to US$ 271.2 million (Rs. 2,263 crore) and US$ 302.9 million (Rs. 2,528 crore) in June.

Chief Investment Officer and President at Kotak Mahindra Asset Management, Mr. Harsha Upadhyaya, noted that investors have shifted from large-cap to small- and mid-cap funds, chasing performance over the past two years. However, higher valuations in small- and mid-caps are now prompting a diversification towards large- and multi-cap funds. Multi-cap funds saw inflows of US$ 564.3 million (Rs. 4,709 crore), a 27-month high. In contrast, sectoral or thematic funds led equity mutual fund inflows for the second consecutive month, totalling US$ 2.68 billion (Rs. 22,352 crore). India's stock benchmarks, Nifty 50 and BSE Sensex rose 7% in June, marking their best month this year. Contributions to systematic investment plans (SIPs) hit a record high of US$ 2.55 billion (Rs. 21,262 crore) in June, achieving an all-time high for the 12th consecutive month.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.