Greeting To Our Readers!
Equity Mutual Fund net inflows recorded the largest surge in the figure in July 2021! All thanks to the new NFO launched that attracted more and more investors to invest in equity mutual funds.
The other reason considered behind is the stock market that defied elevated valuations to reach higher levels during the month.
Let us know in detail!
The Data Says…….
As per the data presented by the Association Of Mutual Funds In India (AMFI) for July 2021, on Monday, equity schemes received a net inflow of ₹20,742.77 crores in July 2021, which calculated around a 350% jump from an inflow of ₹4,608.75 crores in June 2021.
And that’s called a super-duper net inflow in Equity Mutual Funds!
This data simply indicates that investors’ confidence in equity mutual funds is still intact. Concerning investors' confidence, the equity market showed a good rally in July 2021, with multiple reasons responsible like a drop in Covid-19 cases, pick-up in vaccinations, and easing of restrictions.
New Fund Offers Contributed To The Net Inflow………..
The New Fund Offers (NFO) launched by different AMC from the equity category, in July contributed well to the net inflow registered for equity mutual funds in July.
For instance, ICICI Prudential Flexicap Fund garnered ₹9,808 crores, touted to be the highest ever inflows in such funds. As a category, Flexi-cap funds saw a net inflow of ₹11,508.24 crores in July, showed AMFI data.
Talk about another category of equity funds, large- and mid-cap funds received ₹1,234 crores. In fact, except for value fund and Equity Linked Saving Schemes, all equity plans registered net inflows.
Inflows Registered Through sips…………
Inflows registered through SIP (Systematic Investment Plan) in July saw a good surge. The total contribution through monthly SIP was calculated around ₹9,608.86 crores in July 2021, which was up from ₹9,155.84 crore inflow registered in the previous month that is June 2021.
July Proved To Be Month Of New Records For Equity Mutual Fund…………
Several new records were registered by the MF industry in July 2021, some of which are listed below:
- Inflows through the Systematic Investment Plan (SIP) route hit a new high of ₹9,609 crores compared to ₹9,156 crores in June.
- New SIPs registered during July stood at 23.79 lakh, the highest ever registrations in a month
- The MF industry has added 50 lakh folios for the first time, within just two months, that is in June and July 2021.
- The overall Assets Under Management of the MF industry went up to a new high of ₹35.31-lakh crore in July.
Net Inflows Registered By Debt Funds……
Good inflows also were registered in Debt Mutual funds for July 2021. As per the data inflows into debt, funds increased to ₹73,694 crores against net investments of ₹3,566 crores in June.
Categories that recorded the highest inflow were Liquid and money market funds with net inflows of ₹31,740 crores and ₹20,910 crores, respectively.
Let Us Sum Up!
The trend of positive inflows in equity mutual funds continued for the fifth consecutive month this year. Multiple reasons are behind this, typically investors who were waiting for a long-time on the sidelines are getting back.
Investors who saved a good amount last year due to low spending, are also putting their money in Equity funds with a long-term perspective.
The reasons behind the return of these investors are the decline of the second wave, strong recent returns from equities, and the stability of the markets despite the second wave. In fact, these events have made investors build their confidence more in the equity mutual funds.
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For any kind of query, you can contact us at Shri Ashutosh Securities Pvt Ltd., we are here to help you in any way possible.
Happy Investing!
(Mutual Fund investments are subject to market risk Illustrations are for example only, there is no guarantee of returns. Past performance is not an indicator/guarantee to future returns).