Equity inflows rose 17%, while SIP contributions hit ₹21,262 cr

In June 2024, mutual fund industry experienced changes in fund flows across various schemes. According to data released by the Association of Mutual Funds in India (AMFI), the industry's assets under management (AUM) increased to ₹60.89 lakh crore. Investments via systematic investment plans (SIPs) also saw a rise, with contributions reaching ₹21,262 crore in June, compared to ₹20,904 crore in May. The number of new SIPs registered during June was 55,12,962 bringing the total number of active SIP accounts to 8,98,66,962.

The below table shows the SIP inflow in the last four months.

Now let's find out the net inflow scheme wise.

Debt Oriented Schemes

Debt oriented schemes experienced a net outflow of ₹1,07,357.62 crores marking a sharp decline of 353.83% compared to the inflow in May 2024. This large outflow indicates a shift away from debt oriented investments.

Equity oriented schemes

In June, equity oriented schemes in India attracted a total net inflow of ₹40,608.19 crores, marking an increase of 17.04% compared to the previous period. Among these, Multi Cap Funds received ₹4,708.57 crores showing a remarkable surge of 78.03% indicating strong investor confidence in diversified equity investments.

Large Cap Funds also saw substantial inflows totaling ₹970.49 crores representing an increase of 46.36%. However, Small Cap Funds experienced a slight decline with a net inflow of ₹2,263.47 crores down by 16.93% from the previous month. Value/Contra Funds, on the other hand attracted ₹2,027.05 crores reflecting a 44.34% increase in investor interest.

In contrast, ELSS (Equity Linked Savings Scheme) recorded an outflow of ₹445.37 crores, a decrease of 78.29% compared to the previous period. Sectoral/Thematic Funds received attention with a net investment of ₹22,351.69 crores in June marking an increase of 16.33% from the previous month, underlining a strong sector specific investor sentiment during the period.

Hybrid Schemes

In May 2024, hybrid schemes received an inflow of ₹17,990.67 crores. However, in the subsequent period, this figure decreased by 50.78% to ₹8,854.74 crores. This decline in inflows highlights how investor sentiment and market conditions can influence the performance of these blended investment vehicles.

Solution Oriented Schemes

In June 2024, solution oriented schemes received a total net inflow of ₹184.09 crores which is 60.44% lower compared to May 2024 when the inflow was ₹465.39 crores. Among these schemes, Retirement Funds saw a net inflow of ₹125.06 crores showing a decrease of 68.57% from May. Children’s Funds received a net inflow of ₹59.03 crores marking a 12.60% decrease from the previous month's inflow.

Other schemes

In June 2024, Indian mutual fund industry experienced movements in fund flows and investor preferences. The overall trend for the month indicated a net outflow of ₹43,636.55 crores from mutual funds reflecting changing market dynamics and investor sentiment. Within the equity category, there was a net inflow of ₹14,601.80 crores across various schemes. Index Funds attracted ₹5,071.82 crores showing an increase of 12.95% compared to previous periods. However, GOLD ETFs recorded a decrease in inflows with ₹726.16 crores down by 12.24%, while other ETFs saw ₹9,134.06 crores coming in marking a decline of 14.55%. Funds of Funds Investing Overseas experienced an outflow of ₹330.24 crores representing a decrease of 6.23%.

Simultaneously, mutual fund market saw activity in new fund offers (NFOs), with 17 open ended NFOs launched during the month. These NFOs collectively mobilized ₹15,227 crore in investor funds with sectoral and thematic funds leading the way by raising ₹12,974 crore through nine new launches.

Overall, the data for June 2024 highlights a clear shift in investor preferences towards equity oriented funds despite the overall outflows from the mutual fund industry. This movement reflects broader market trends and investor behavior influenced by economic conditions and investment opportunities during the period.

Key statistics for June 2024

In June 2024, mutual fund industry saw growth across various categories:

1. Total Mutual Fund Folios: Hit an all time high of ₹19,10,47,118.

2. Retail Mutual Fund Folios: Also reached a record high of ₹15,32,56,488 up from ₹14,89,54,824 in May 2024. This category includes equity, hybrid and solution oriented schemes.

3. Equity Fund Inflows: Reached a record ₹40,608 crore marking 40 consecutive months of positive inflows starting from March 2021.

4. SIP Contributions: Set a new record at ₹21,262 crore in June 2024, up from ₹20,904 crore in May 2024.

This growth highlights strong investor interest in equity oriented funds, hybrids and passive funds driven by effective investor education, robust distribution networks and advancements in digital services within the mutual fund industry.