Equity mutual fund inflows fall to ₹7,505 crore in July: AMFI Data

Among the equity mutual fund categories, the small-cap category received the highest inflows of ₹4,171.44 crore, followed by the multi-cap category with ₹2,500.47 crore.

Large-cap funds saw the highest outflow of ₹1,880 crore, followed by the focused funds category which witnessed an outflow of ₹1,066.72 crore.

AMFI Data for June

Amid a rally in the stock market, equity mutual funds attracted ₹8,637 crore in June, making it the highest net inflow in three months, This was way higher than ₹3,240 crore inflow seen in May and ₹6,480 crore in April, Amfi data showed. Inflow through SIP was at ₹14,734 crore last month. Apart from equities, hybrid schemes saw an inflow of ₹4,611 crore, with a large part of flow into arbitrage funds at ₹3,366 crore.

Passive funds have gained traction among investors in India in the last few years, capturing a market share of over 17 per cent of assets under management (AUM) in 2023 from 1.4 per cent in 2015, according to a study.

A passive fund is an investment vehicle that tracks a market index or a specific market segment. These funds include passive index funds, Exchange Traded Funds (ETFs), and Funds of Funds investing in ETFs.

According to the study by Motilal Oswal Asset Management Company, 61 per cent of investors who participated in the study have invested in at least one passive fund and 53 per cent of respondents increased their allocation to passive funds in the last 12 months.

The low-cost nature of passive funds has been cited as the biggest reason by investors for opting for such funds, followed by the simplicity of these funds and market returns.

Updated: 09 Aug 2023, 03:00 PM IST