Equity Mutual Funds Inflows Record 10,585 Crore Rupees In July

Equity mutual funds inflows recorded 10,585 crore rupees in July 2018, accounting for the total inflow of above 43,300 crore Rupees in equities during the April-July quarter of the existing financial year.

The equity and equity-linked saving schemes witnessed an inflow of 12,409 crore Rupees, 12,070 crore Rupees, 8,237 crore Rupees, 10,585 crore Rupees in April, May, June, and July, respectively, according to the data from the AMFI (Association of Mutual Funds in India).

The strong inflow increased the AUM (Asset Under Management) of equity mutual funds by more than 10 percent to 8.3 lakh crore Rupees by the end of July 2018. The AUM of equity MFs was 7.5 lakh crore Rupees at the end of March 2018.

Equity mutual funds inflows are primarily motivated by robust corporate earnings season and near normal monsoon. Also, the Indian investors are more financially literate and mature in the past few years.

According to Sumit Bhatnagar, Head of Equity Funds, Indiabulls AMC, many investors are attracted towards increasing the share of equity mutual funds in their asset allocations owing to the possibility of double-digit returns from the category over the long term.

The increase in the inflow of equity mutual funds is primarily because of the “bull run in large-cap and a promising economic outlook,” said Harsh Jain, COO at Groww.In.

Investors are becoming more financially literate and mature, and are investing through SIPs (Systematic Investment Plans), which protects them to short-term volatility, he said.

In addition, many investors who were hesitant to invest through MFs previously are getting attracted towards mutual funds, and the trend will continue for the next 3 years to 5 years, he added.

The surge in AUM in July 2018 is because of the inflows and increase in underlying stocks’ prices, said Viral Berawala, CIO at Essel MF.

Equity mutual funds inflows in July and total inflows during the April-July quarter are recorded as stated above based on AMFI data, according to ZEE BUSINESS.

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