Equity Inflows Rose 17% While SIP Contribution Touched Rs 21,262 Crore

In June 2024, the mutual fund industry exhibited notable changes in inflows and outflows across various schemes. The AMFI released mutual fund data for June 2024 revealing significant movements, particularly in debt-oriented and equity-oriented schemes. Assets under management (AUM) of the mutual fund industry rose to hit Rs 60.89 lakh crore in June, data showed.

Contribution via systematic investment plans (SIPs) touched Rs 21,262 crore as compared to Rs 20,904 crore in May, the data released by the Association of Mutual Funds in India (AMFI) revealed.

Number of new SIPs registered during June stood at 55,12,962. The closing balance of a number of SIP accounts stood at 8,98,66,962.

Debt-Oriented Schemes

The debt-oriented schemes experienced a substantial net outflow of Rs 1,07,357.62 crores, marking a sharp decline of 353.83% from the inflow of May 2024. This large outflow indicates a significant shift away from debt-oriented investments.

Equity-oriented schemes

Equity-oriented schemes saw a positive net inflow of Rs 40,608.19 crores, an increase of 17.04%. Within this category, Multi Cap Funds attracted Rs 4,708.57 crores, a remarkable 78.03% rise, showing investor confidence in diversified equity investments. Large Cap Funds received Rs 970.49 crores, up by 46.36%. Small Cap Funds experienced a net inflow of Rs 2,263.47 crores, which decreased 16.93% from last month’s inflow. Value/Contra Funds saw an inflow of Rs 2,027.05 crores, a 44.34% increase. However, ELSS (Equity Linked Savings Scheme) recorded an outflow of Rs 445.37 crores, down by 78.29%. Sectoral/Thematic Funds, with the category getting a net investment of Rs 22,351.69 crore in June which jumped 16.33% from last month.

Hybrid Schemes

Hybrid schemes had a net inflow of Rs 8,854.74 crores, but this category showed a decline of 50.78% from the inflow of Rs 17,990.67 in May 2024. The mixed performance of hybrid funds reflects varying investor sentiment and market conditions impacting these blended investment vehicles.

Solution-Oriented Schemes

Solution-oriented schemes reported a net inflow of Rs 184.09 crores, decreasing by 60.44% from the inflow of Rs 465.39 in May 2024. Within this segment, Retirement Funds recorded a net inflow of Rs 125.06 crores, down by 68.57%. Children’s Funds had a net inflow of Rs 59.03 crores, a decrease of 12.60% from the inflow of May 2024.

Other schemes

The category of other schemes saw a net inflow of Rs 14,601.80 crores, a slight decline of 6.73% from the inflow of May 2024. Among these, Index Funds attracted Rs 5,071.82 crores, up by 12.95%. GOLD ETFs recorded a net inflow of Rs 726.16 crores, down by 12.24%. Other ETFs saw an inflow of Rs 9,134.06 crores, a decline of 14.55%. Funds of Funds Investing Overseas experienced an outflow of Rs 330.24 crores, a 6.23% decrease.

Around 17 open-ended NFOs were floated in June, which together mobilised Rs 15,227 crore with highest contribution by sectoral/thematic funds of Rs 12,974 crore. Around nine sectoral funds were launched in June.

The overall net outflow for the mutual fund industry in June 2024 stood at Rs 43,636.55 crores. This figure highlights the significant movement of funds across different investment schemes, reflecting broader market trends and investor behaviour during the month.

The AMFI data for June 2024 shows a clear trend of shifting preferences among investors, with substantial outflows in debt-oriented schemes and notable inflows in equity-oriented funds.

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. The information is based on various secondary sources on the internet and is subject to change. Please consult with a financial expert before making investment decisions.