Equity mutual funds saw a net inflow of ₹15,498 crore in June amid heavy volatility in the stock market and continued selling by foreign portfolio investors (FPIs).
Equity mutual funds saw positive momentum in June for the 16th consecutive month.
Data from the Association of Mutual Funds in India (AMFI) on Friday showed that inflows into equity mutual funds in June were very low as compared to net inflows of Rs 18,529 crore seen in May.
The lower quantum of net inflows as compared to the previous month can be attributed to investors taking a cautious approach given the ongoing challenges in the investment environment.
Equity schemes are witnessing net inflows since March 2021, highlighting the positive sentiment among investors.
Earlier, such schemes saw continuous outflows for eight months from July 2020 to February 2021, incurring a loss of ₹46,791 crore.
All equity-oriented categories received net inflows in June, with the flexi-cap fund category being the biggest beneficiary with a net inflow of ₹2,512 crore. Then came multi-cap funds, with a net investment of Rs 2,130 crore.
The fresh investment comes at a time when the domestic stock market is under heavy pressure.
Also foreign investors dumped ₹50,203 crore worth of Indian stocks in June, making it the worst net outflow in two years, on aggressive rate hikes by the US Federal Reserve, high valuations of domestic equities coupled with high inflation. It also marks the ninth consecutive monthly withdrawal by FPIs.
Apart from equities, gold exchange-traded funds (ETFs) experienced a net inflow of ₹135 crore in the month under review.
However, the debt segment saw a net outflow of ₹92,247 crore in June, as against a net outflow of ₹32,722 crore in the previous month.
Overall, the mutual fund industry recorded a net outflow of Rs 69,853 crore last month, compared to a net outflow of Rs 7,532 crore in May.
The outflow pulled the average assets under management (AUM) of the industry to Rs 36.98 lakh crore at the end of June, from Rs 37.37 lakh crore at the end of May.