Equity MF inflows rebound to over ₹28,970cr in June
What's the story
Equity mutual funds have witnessed a significant recovery in inflows for the month of June. The Association of Mutual Funds in India (AMFI) reported an increase in equity fund inflows to ₹28,973 crore, up from ₹22,908 crore in May. This indicates a positive shift in investor sentiment after a relatively softer month earlier. However, it's worth noting that these inflows are still lower than the amounts seen in March and April when investments exceeded ₹40,000 crore and ₹38,000 crore, respectively.
Fund performance
AUM of equity schemes rises to ₹37.34 lakh crore
The assets under management (AUM) of equity schemes also saw a rise, reaching ₹37.34 lakh crore in June from ₹36.14 lakh crore in May. Hybrid funds continued to draw investor interest with net inflows of ₹12,893 crore, higher than the previous month's ₹10,560 crore. However, debt mutual funds witnessed another month of heavy outflows as investors withdrew ₹1.09 lakh crore compared to May's outflows of ₹96,949 crore.
Market trends
Gold ETFs see sharp turnaround
One of the biggest trends in June was the sharp turnaround in Gold ETFs. After witnessing net outflows of ₹725 crore in May, the category saw fresh investments worth ₹3,443 crore in June. This marks a major reversal from last month's trend and indicates renewed investor confidence. Meanwhile, solution-oriented schemes received ₹321 crore while other schemes saw net inflows of ₹16,724 crore during this period.
Investment trends
Mid-cap funds most popular among investors
In June, mid-cap funds remained the most popular among investors with inflows of ₹6,090 crore. They were followed by small-cap funds which attracted inflows of ₹5,602 crore and flexi-cap funds with ₹5,231 crore. Large- and mid-cap funds also saw healthy investor interest with inflows of ₹4,321 crore while multi-cap schemes attracted investments worth ₹3,070 crore during this period.
Fund performance
Liquid funds account for bulk of outflows
Debt mutual funds continued their losing streak in June with net outflows widening to ₹1.09 lakh crore from May's ₹96,949 crore. Liquid funds accounted for the bulk of these outflows with investors withdrawing ₹42,293 crore during this period. Low-duration and ultra-short-duration funds followed suit witnessing withdrawals worth ₹16,484 crore and ₹11,426 crore, respectively. Money market and overnight funds also remained under pressure recording outflows of ₹10,595 crore and ₹10,580 crore, respectively, during this time.