Despite a fall of 2,500 points in the Sensex last month, retail investors in equity funds have accumulated around Rs 15,500 crore in these schemes, reflecting the growing level of investment maturity and knowledge. Mutual fund (MF) industry players said that the investment through SIP route is Rs. 12,000-crore, which also indicates an improvement in investment behavior in this group.
Data from the Association of Mutual Funds in India (AMFI) in June showed that flexi cap funds earned more than Rs 2,500 crore, while large cap funds earned Rs 2,130 crore and large and midcap funds around Rs 2,000 crore. All growth and equity-oriented funds showed positive flows.
Despite market volatility in June, strong inflows into equity schemes indicate that investors are putting their money into these MFs with the aim of getting long-term returns, said Preeti Rathi Gupta, founder of the Financial Forum for Women. – LXME. “It can also result in investors being more aware of how important it is to have assets in their portfolio that can withstand inflation,” Gupta said.
Data from the fund industry trade body Amfi also shows that in the month of June, the total income through SIP route was Rs. 12,276 crore, almost Rs. 12,286 crore. In addition, around 5.54 crore, the number of SIP accounts reached new highs.
According to Akhil Chaturvedi, Chief Business Officer, Motilal Oswal AMC, the monthly SIP contribution is Rs. Staying above 12,000-crore indicates that “retail investors have a good awareness of the long-term orientation of equity investments and an understanding of the current volatility as part and parcel. Of equity investing ”. He also pointed out that with the influx in equity schemes in June, hybrid funds also remained flexible despite tireless sales of foreign funds and market improvements throughout the year.
In June, foreign funds had a net sale of shares worth Rs 50,203 crore, the highest number since March 2020, according to CDSL data. Amphi’s June data also showed a net outflow of Rs 92,248 crore from debt funds. But this was mainly due to corporate withdrawals in the first half of the month to meet the advance tax obligations that fell on June 15. Banks that want to avoid capital charges imposed by the RBI can also be credited with the exit, said NS Venkatesh, chief executive of Amfi.