AMFI's data on mutual fund flows for July has revealed that open-ended mutual funds witnessed net inflows of just under Rs 96,000 crore, substantially higher than the previous month, on account of net inflows observed in debt funds.
Open-ended equity funds, however, saw contrasting trends. Despite the outflows, all open-ended categories of equity funds witnessed an increase in the assets under management buoyed by market gains. In fact, barring just three categories of open-ended funds - credit risk, arbitrage and equity savings, all other funds saw an increase in their AUM over the previous month.
Overall, the mutual fund industry added over Rs 1.6 lakh crore to its AUM in July, taking the total industry assets to Rs 27 lakh crore.
Equity
After a gap of over four years, open-ended equity mutual funds witnessed outflows of Rs 2,480 crore on a net basis. Barring focused funds and ELSS funds, all other equity categories observed net outflows, with maximum being in multi-cap funds (Rs 1,033 crore), mid-cap funds (Rs 579 crore) and value funds (Rs 549 crore). While the mobilisation of funds was broadly in line with the trends in the previous month, there was a notable increase in the redemption that led to outflows on a net basis.
The SIP contribution for July stood at Rs 7,831 crore, a decline for the fourth consecutive month now.
Debt
Net inflows in debt funds stood at Rs 91,392 crore. Barring credit risk funds, which have been observing net outflows for quite some time, all other categories had net inflows. Categories, such as liquid funds, low-duration funds, short-duration funds and corporate bond funds, saw maximum investor interest.
Dynamic bond funds, which had been observing muted inflows or net outflows over the past few months, saw massive net inflows this month.
Gilt funds continued to see investors' interest at an accelerated pace, as net inflows shot up to just under Rs 3,400 crore. Assets managed by gilt funds stood at Rs 19,027 crore, an increase of 23 per cent over the previous month. However, those who invested in the fund in July with the expectation of a rate cut decision during the meeting of the Monetary Policy Committee at the beginning of August may have been left disappointed.
Others
Hybrid funds observed net outflows of Rs 7,301 crore. These funds, along with arbitrage funds (Rs 3,732 crore) and aggressive hybrid funds (Rs 2,196 crore) contributed significantly to these outflows.
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