Lower new fund offers (NFOs) have led to a drop in inflow in equity mutual funds by 22 per cent to ₹33,430 crore in August, as per data released by the Association of Mutual Funds in India (AMFI) on Wednesday.
This was a sharp decline from ₹42,702 crore in the preceding month, the data revealed.
Also, the latest fund infusion by investors marks the 54th consecutive month of net inflows into the segment.
"The lower impact of new flow viz previous month roughly ₹9,000 crore is to the extent of NFO's which were higher in July than August. Rest the flow momentum is steady and healthy," said Akhil Chaturvedi, Executive Director and Chief Business Officer at Motilal Oswal Asset Management Company.
"Given past trends, I was hoping for a higher SIP number which is now flat around ₹27,000 crore. Broadly, Indian investors continue to add equities to their allocation despite global headwinds and FPIs selling, and this is very positive for the markets," he added.
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Within equity fund categories, the highest contribution came from Flexi Cap Funds at ₹7,679 crore, followed by Mid Cap Funds with₹5,330 crore. Small Cap Funds attracted ₹4,993 crore, Sectoral/Thematic Funds added ₹3,893 crore and Large Cap Funds saw an inflow of ₹2,835 crore.
On the other hand, debt category witnessed a withdrawal of ₹7,980 crore during the month under review.
Overall, the mutual fund industry experienced an infusion of ₹52,443 crore in August, lower than ₹1.8 lakh crore in July.
The industry assets under management was at ₹75.2 lakh crore at the end of August compared to ₹75.36 lakh crore in July-end.
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