Small And Mid Caps, NFOs Drive Over Twofold Surge In Equity Fund Inflows In August

Small- and mid-cap schemes logged a combined net inflow of more than Rs 6,700 crore during the month.

<div class="paragraphs"><p>(Source: jcomp on Freepik)</p></div>
(Source: jcomp on Freepik)

Equity mutual funds saw net inflows more than double sequentially in August on the back of a rise in small- and mid-cap investments as well as five new fund offers in sectoral and thematic schemes.

Net investments into actively managed equity schemes increased more than 2.65 times month-on-month to Rs 20,245.3 crore in August, according to data released by the Association of Mutual Funds in India on Monday. That's the highest in since Rs 20,534-crore inflow in March.

Small- and mid-cap schemes logged a combined net inflow of more than Rs 6,700 crore during the month, up from Rs 5,700 crore in July.

Category-Wise Trends

Small-cap funds saw inflows of Rs 4,264.8 crore in August against Rs 4,171.4 crore in July. Outflows from large-cap schemes moderated in August to Rs 349 crore from Rs 1,880 crore in July.

Mid-cap funds reported inflows of Rs 2,512.3 crore versus net investment of Rs 1,623.3 crore in the previous month.

Inflows into multi-cap funds rose to Rs 3,422.1 crore from Rs 2,500.5 crore in July.

SIP Contribution

SIPs continue to be the success story this month as well, showing that retail investor continues to repose faith in mutual funds, investing through this route, said AMFI chief executive NS Venkatesh, as the contributions touched a new high.

SIP contribution to mutual funds industry in August stood at Rs 15,813.5 crore, compared with Rs 15,242.7 crore in July.

Liquid Funds

Liquid funds saw outflows of Rs 26,823.7 crore compared with inflows of Rs 51,938.4 crore in July. Businesses use such schemes to park short-term cash.

Credit-risk funds witnessed outflows for the fifth month in a row at Rs 270.8 crore, rising from Rs 166.3 crore in July.

Net Flows

All mutual funds across equity and debt recorded cumulative net inflows of Rs 14,385.9 crore in August. A month ago, the schemes saw inflows of Rs 82,046.1 crore. The steep decline in industry inflows came on the back Rs 25,872.5 crore in debt-oriented schemes, compared to inflows of Rs 61,440.1 crore in .July

Money market funds saw inflows of Rs 91.5 crore in August against net investment of Rs 8,608.1 crore in July.