Mutual Fund Industry July 2024 AMFI Data: The picture of the Indian mutual fund industry in July 2024 has been quite interesting. According to the data released by the Association of Mutual Funds in India (AMFI), during July 2024, investment through Systematic Investment Plan (SIP) in the country made a new record, sectoral and thematic funds were also hit, but the total inflow in equity mutual funds decreased. This information has been given in the data released by AMFI on 9 August.
Inflows in equity funds decreased, monthly SIP set a new record
According to AMFI data, the total inflow of open-ended equity mutual funds fell by 9% to Rs 37,113 crore in July. This decline is much higher than in June, when the inflow rose 17% to a record high of Rs 40,608 crore. The main reason for this decline has been the lack of investment in large-cap and mid-cap funds. But despite the decline in total equity fund inflow, investments in mutual funds through Systematic Investment Plan (SIP) continued to increase steadily. In July, the monthly SIP inflow set a new record, reaching Rs 23,332 crore, which is much higher than June’s Rs 21,262 crore. This increase in SIP inflow shows that retail investors’ confidence in mutual funds remains constant.
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Sectoral or thematic funds were a hit
Sectoral or thematic funds accounted for the bulk of the inflows into equity mutual funds in July. This category saw a net inflow of Rs 18,386 crore. This was largely due to the nine new fund offers (NFOs) launched in this category. These NFOs raised a total of Rs 12,974 crore during the month. However, inflows into large-cap funds fell 31% to Rs 670 crore, while mid-cap and small-cap funds also saw a slow pace of new investments. Despite this, small-cap funds saw a net inflow of Rs 2,109 crore and mid-cap funds received new investments of Rs 1,644 crore.
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Inflows into multi-cap funds increased by 50%
Multi-cap funds, which invest in large-cap, mid-cap, and small-cap stocks, saw inflows of Rs 7,084 crore in July, a 50% increase. Dividend yield funds, which are large-cap oriented, also recorded higher inflows of Rs 630 crore in July compared to Rs 520 crore in June.
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Net inflow of Rs 1.19 lakh crore in debt funds
In the fixed-income category, debt mutual funds saw a net inflow of Rs 1,19,588 crore in July, as against a net outflow of Rs 1,07,358 crore in June. The liquid fund category, which had seen a huge net outflow of Rs 80,354 crore in June, received the highest inflow of Rs 70,061 crore in July. The reason for this shift is that corporates and traders reinvested their excess short-term funds in these funds. Other debt fund categories also saw net inflows with shorter-duration investment profiles, reflecting a shift towards safer investment options amid uncertainty about interest rate cuts. The hybrid category, which invests across different asset classes including commodities, equity and debt, saw a strong net inflow of Rs 17,436 crore in July.
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Industry AUM reached Rs 64.97 lakh crore
Overall, open-ended mutual funds recorded a net inflow of Rs 1,89,141 crore in July, taking the mutual fund industry’s net assets under management (AUM) to Rs 64.97 lakh crore. This is a significant milestone for the industry, which crossed the Rs 60 lakh crore mark for the first time in June.
Despite fluctuations in equity fund inflows, the stock market performed well in July, with the BSE Sensex gaining 3.43% and the NSE Nifty gaining 3.92%. In fact, retail investors have now started to understand that volatility has to be faced during wealth creation in the long term. The share of financial assets in the total wealth of investors is increasing rapidly and a large part of these financial assets has now been taken over by the mutual fund market.
