The Association of Mutual Funds of India (AMFI) announced that equities fund inflows increased by 17% month on month. The mutual fund industry’s assets under management (AUM) surpassed ₹60 lakh crore for the first time.
AMFI data shows that equities fund inflows reached a new high of ₹40,608 crore in June, up 17% month on month. In May, equities mutual fund net inflows reached a new high of ₹34,697 crore, up 83.42% month on month. However, in June, debt mutual funds experienced net withdrawals of ₹1,07,357.62 crore. Overall, open-ended mutual funds saw net outflows of ₹43,108.80 crore.
Despite this, open-ended equity funds were positive for the 40th straight month. In June, Sectoral/Thematic Funds received a net investment of ₹22,351.69 crore, the highest among equity fund categories. Nine new funds raised ₹12,974 crore, contributing significantly to this growth.
“The record inflows into equities funds in June were underpinned by consistent SIP flows, strong NFO receipts, and lump sum purchases during corrections. Investors shrugged off election-related volatility, and when the uncertainty surrounding government formation subsided, investors seized the correction to increase their exposure.
Overall, increased investor trust has resulted in recurrent investments, contributing to the upward trend in flows and overall industry growth. We believe that investors have matured and are leveraging short-term volatility to build long-term wealth. With the budget on the doorstep, investors continue to be confident in their investments,” said Akhil Chaturvedi, Executive director & chief business officer, Motilal Oswal Asset Management.
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