The mutual fund industry’s assets under management reached ₹64.97 lakh crore (trillion) in July, up 6.24 per cent from ₹61.15 lakh crore in June and 40.11 per cent from ₹46.37 lakh crore in July 2023.
The growth in July is supported by inflows into both equity and debt-oriented funds as well as consistent SIP inflows. Equity funds saw inflows of ₹37,113.39 crore, driven primarily by ₹18,386.35 crore inflows into sectoral and thematic funds. Debt funds saw ₹1,19,587.60 crore coming in, led by inflows of ₹70,060 crore into liquid funds.
“The volatility in domestic equity markets following heightened geopolitical tensions notwithstanding, the Indian mutual fund industry continued to witness a robust surge in inflows in July,” said Ashwini Kumar, senior vice-president and head market data, Icra Analytics.
“In July 2024, equity inflows declined 9 per cent (month on month), yet the positive trend continues for 41 months, reflecting strong investor confidence. Sectoral/thematic funds contributed ₹18,386.35 crore, while multi-cap funds attracted ₹7,084.61 crore,” said Pankaj Shrestha, head — investment services, PL Capital — Prabhudas Lilladher.
“There is still positivity on NFOs (especially in the thematic space) with ₹13,000 crore of inflows. The decline in equity MF inflow and increased flow in debt funds can be attributed to the market volatility and global concerns among few investors,” said Akhil Chaturvedi, executive director and chief business officer, Motilal Oswal AMC.
However Ashwini Kumar of Icra said investors should exercise caution while investing in sectoral or thematic funds.
“Such funds come with a bias as they are inclined towards a theme or sector. This is in stark contrast to a diversified fund as it has exposure to multiple sectors and is well insulated from such sectoral shocks even though not completely immune to it,” said Kumar.
SIP contribution stood at ₹23,331.75 crore in July against ₹21,262.22 crore in June. The number of SIP accounts stood at 9,33,96,174 compared with 8,98,66,962 in June.
“SIP contributions reaching an all-time high in July 2024 reflects the growing financial discipline among retail investors,” Venkat Chalasani, chief executive, Amfi, said.
