Equity mutual fund inflows jump 26% to Rs 29,000 crore in June despite market volatility

Despite stock market volatility in June, net inflows into equity mutual funds jumped 26% over May to almost Rs 29,000 crore, as investors poured money into mid- and small-cap funds ahead of other types of schemes, according to data released by Amfi, the fund industry trade body.

Gross flows through the SIP route also jumped to nearly Rs 31,800 crore, a three-month high, though still short of the highest gross monthly inflow through the SIP route this year, Rs 32,087 crore, recorded in March.

June marked the 64th consecutive month of positive net flows into equity funds, a streak stretching back to March 2021, Amfi said. ‘The June data is a sign of growing investor confidence and the increasing adoption of disciplined, long-term investing through the mutual fund route,’ said Venkat Chalasani, chief executive of Amfi.

Retail assets under management, which include the total worth of assets under equity, hybrid and solution-oriented schemes, stood at Rs 49.4 lakh crore in June, up from Rs 47.9 lakh crore in May. At an overall level, the fund industry’s net assets under management in June stood at Rs 82.2 lakh crore, up marginally from Rs 81.6 lakh crore in May.

Mid-cap funds recorded a net inflow of Rs 6,090 crore during the month, while small-cap and flexi cap funds saw net inflows of Rs 5,602 crore and Rs 5,231 crore, respectively. Gold ETFs also drew strong inflows, with net inflows of Rs 3,443 crore, reversing a net outflow of Rs 725 crore the previous month.