Mutual fund assets under management touched ₹66.7 trillion in August 2024, up 20 per cent year-on-year compared with ₹46.63 trillion in August 2023. In July the AUM was at ₹65 trillion.

Equity funds saw an inflow of ₹38,239.16 crore led by sectoral and thematic funds, which saw an inflow of ₹18,117.18 crore continuing on the inflow trend of ₹18,386 crore seen in July.

Large-cap funds saw a significant rise in inflows at ₹2,636.86 crore compared with an inflow of ₹670.12 crore in July. Flexi cap funds saw an inflow of ₹3,513.16 crore.

“Similar to July, more than 50 per cent of the inflows in the sectoral and thematic funds were led by funds mobilised through NFOs (new fund offers) launched in August,” said Venkat Chalasani, chief executive of AMFI.

There were five NFOs in sectoral and thematic funds in August, mobilising funds worth ₹10,202 crore.

During August, mutual fund folios reached an all-time high of 20.45 crores and SIP contribution was at ₹23,547.34 crore in August against ₹23,331.75 crore in July.

“We are interestingly seeing investors balancing their asset allocation in favour of large-cap, multi-cap and flexi-cap funds. Given the run-up in mid and small-cap space, managing risk is paramount today and from that perspective, this is a good development.

“Thematic funds through NFOs are also garnering high inflows,” said Akhil Chaturvedi, executive director and chief business officer, Motilal Oswal AMC.

Debt funds saw an inflow of ₹45,169.36 crore led by inflows into overnight funds (₹15,103.93 crore), liquid funds (₹13,594.87 crore) and money market funds (₹10,093.26 crore). However, this was less than the ₹1,19,587 crore inflows in debt funds in July.

“The AMFI data indicates that domestic flows continue to be strong and despite the global uncertainty and volatility, this will continue to drive the markets,” said Deepak Ramaraju, senior fund manager, Shriram Asset Management Company Limited.

“However, a cautious undertone is likely to prevail as investors process disappointing US employment data and look ahead at key macro data due later this week.

“The upcoming domestic industrial production and retail inflation data, scheduled for release later this week, are expected to offer essential insights into the condition
of the Indian economy and may significantly influence RBI’s upcoming monetary policy decisions,” said Ashwini Kumar, senior vice-president and head market data, Icra Analytics.