Net flows into mutual funds took a notable hit in August, registering a decline of 42.8% primarily due to reduced inflows into debt-oriented schemes. The total net inflows for the month stood at Rs 1.08 lakh crore, a steep drop from Rs 1.89 lakh crore recorded in July. However, equity mutual funds showed resilience, with inflows increasing by 3% to Rs 38,239.16 crore, up from Rs 37,113.4 crore in July. This uptick was largely driven by renewed interest in sectoral and thematic funds. Here’s a deeper dive into the performance of various mutual fund categories.
Sectoral and thematic funds remain the largest category by assets under management (AUM), boasting Rs 4.45 lakh crore. Despite a marginal decline in month-on-month inflows, these funds continue to dominate, contributing nearly 47% of the flows into actively managed equity funds.
Small-cap funds saw robust inflows of Rs 3,209.3 crore in August, up significantly from Rs 2,109.2 crore in July, reflecting growing investor confidence in smaller companies. Mid-cap schemes also attracted strong inflows of Rs 3,064.58 crore, compared to Rs 1,644.2 crore in the previous month, indicating a broader market rally in this segment.
Flexi cap funds recorded inflows of Rs 3,513.16 crore in August, showcasing their flexibility in adapting to varying market conditions. Meanwhile, large-cap funds saw a remarkable surge in inflows, reaching Rs 2,636.8 crore, a substantial jump from Rs 670.1 crore in July. This rise suggests a growing preference for stability and established market leaders among investors.
Contrary to other equity categories, multi-cap funds experienced a decline in inflows, recording Rs 2,475.06 crore in August, down from Rs 7,084.6 crore in July. This sharp fall indicates a possible shift in investor sentiment towards more focused or thematic investments.
The overall inflows into mutual funds totaled Rs 1.08 lakh crore in August, reflecting a significant drop from Rs 1.89 lakh crore in July. Despite the downturn in net flows, the total assets under management (AUM) increased to Rs 66.7 lakh crore in August from Rs 65 lakh crore in the previous month, underscoring the market’s resilience and continued investor interest.
Dreaming of financial freedom? Use our Online SIP Calculator to see how regular investments can add up to grow wealth. Take the first step towards your goals. Calculate now!
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
We're Live on WhatsApp! Join our channel for market insights & updates
Start Your Mutual Fund Investments Journey Today
Join our 2 Cr+ happy customers
Get the link to download the App
