Indian equity mutual fund inflows jump 19 percent in August to Rs 29,328.62 crore
Indian retail investors poured Rs 29,328.62 crore into equity mutual funds in August, marking a 19 percent jump as SIP contributions hit a record high.
Indian retail investors poured Rs 29,328.62 crore into equity mutual funds in August, marking a sharp 19 percent jump from the previous month and recovering lost ground after a dip in July, according to fresh data released by the Association of Mutual Funds in India (AMFI). The surge demonstrates an unyielding appetite for risk despite ongoing stock market volatility, pushing equity flows back above June levels and driving systematic investment plan contributions to an all-time high.
The monthly rebound follows a volatile period where equity inflows had fallen about 15 percent month-on-month in July from June's Rs 28,973 crore baseline, as reported by Moneycontrol. August trading activity pushed equity flows past those earlier marks. Total Assets Under Management (AUM) for the mutual fund industry climbed over 1 percent month-on-month to reach Rs 87.08 lakh crore by the end of August, while average monthly AUM settled at Rs 88.31 lakh crore, according to Gujarat Samachar. Furthermore, equity AUM expanded to Rs 39.21 lakh crore from July's Rs 38.36 lakh crore, representing an increase of about 2.2 percent.
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High-growth funds dominated category allocations. Small-cap funds pulled in the highest single category allocation at Rs 7,973.33 crore, rising from Rs 7,767.50 crore in July. Mid-cap schemes followed closely at Rs 6,989.40 crore, marking an increase of nearly 13 percent from July's Rs 6,192.31 crore. Together, small-cap and mid-cap funds accounted for about 51 percent of total equity inflows during the month. Flexi-cap funds gathered Rs 5,059.42 crore, multi-cap funds secured Rs 3,732.77 crore, and large- and mid-cap funds attracted Rs 3,872.79 crore. Conversely, large-cap funds remained in negative territory for the second consecutive month, recording net outflows of Rs 1,147.36 crore, though this was an improvement over the Rs 1,321.69 crore outflow seen in July.
Fuelled by relentless retail participation, monthly SIP contributions hit a historic milestone of Rs 32,297 crore in August, surpassing the previous high of Rs 31,961 crore in July. The figure extends a steady upward trajectory that saw monthly contributions stand at Rs 31,781 crore in June before crossing the Rs 32,000 crore threshold for the first time. This monthly surge fits into a broader trend revealed by Securities and Exchange Board of India (SEBI) data, which showed net SIP inflows crossing Rs 2 trillion in the financial year, with net collections accounting for nearly 56 percent of the Rs 3.5 trillion gross SIP pool, beating the 54 percent share recorded in the previous financial year despite rising account closures driven by market volatility.
| Asset Class / Category | July Inflow / Outflow (Rs crore) | August Inflow / Outflow (Rs crore) |
|---|---|---|
| Equity-Oriented Schemes (Total) | +24,697.39 | +29,328.62 |
| Small-Cap Funds | +7,767.50 | +7,973.33 |
| Mid-Cap Funds | +6,192.31 | +6,989.40 |
| Large-Cap Funds | -1,321.69 | -1,147.36 |
| Debt Schemes (Total) | +1,87,511.32 | -8,127.32 |
| Hybrid Schemes (Total) | +11,490.56 | +10,045.34 |
| Gold ETFs | +1,558.75 | +2,596.70 |
Performance across other asset classes remained highly uneven during the month. Debt schemes experienced a sharp reversal, swinging from a massive Rs 1,87,511.32 crore inflow in July to net outflows of Rs 8,127.32 crore in August. The biggest drag came from overnight funds, which recorded redemptions worth Rs 30,654.25 crore, reversing the Rs 40,412.55 crore inflow seen in July. Corporate treasuries and institutional investors instead parked funds back into liquid schemes, driving a net inflow of Rs 19,934.29 crore, alongside money market inflows of Rs 11,734.71 crore.
Hybrid schemes maintained steady momentum by attracting Rs 10,045.34 crore, though this represented a moderation from July's Rs 11,490.56 crore. Momentum was steered primarily by arbitrage funds at Rs 3,789.02 crore and multi-asset allocation funds at Rs 3,670.97 crore. Meanwhile, exchange-traded funds recorded robust activity, with gold ETFs seeing a strong pickup to attract Rs 2,596.70 crore鈥攗p nearly 67 percent from July鈥攁longside silver ETFs pulling in Rs 1,270.63 crore and equity ETFs capturing Rs 7,237.49 crore.
The August reporting period also incorporates changes in AMFI classification across several fund categories, introducing separate reporting for ETFs, index funds, overseas funds, and life cycle funds. Consequently, certain August categories are not directly comparable with previous groupings.
