Inflow into equity mutual funds slumped 95 per cent to a little over Rs 240 crore in June as investors pulled out from large-cap and multi-cap funds due to profit booking.

This is the third consecutive monthly decline in inflow in equity mutual funds, data by the Association of Mutual Funds in India (Amfi) showed on Wednesday.

Overall, the mutual fund industry witnessed a net inflow of Rs 7,265 crore across all segments last month, much lower than Rs 70,813 crore in May, primarily because of the outflow from liquid funds.

According to the data, inflow into equity and equity-linked open ended schemes was Rs 240.55 crore in June against Rs 5,256 crore in May, translating into a decline of 95 per cent. Such schemes attracted Rs 6,213 crore in April, Rs 11,723 crore in March, Rs 10,796 crore in February and Rs 7,877 crore in January.

Arun Kumar, head of research at FundsIndia.com,said, “Equity inflows have slowed down as many investors are waiting for clarity on their own future cash flows before investing further. A portion of investors have also been caught by surprise over the sharp equity rally and are still waiting for lower levels to enter back. Future equity flows to a large extent will depend on how soon the confidence on future cash flows for individuals returns back to normal.”