Equity MFs see ₹15,498-crore inflow in June amid volatile stock market

Equity schemes have been witnessing net inflow since March 2021

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Equity mutual funds witnessed a net inflow of ₹15,498 crore in June amid heightened volatility in the stock market and consistent selling by Foreign Portfolio Investors (FPIs).

Equity mutual funds witnessed positive momentum for the 16th straight month in June.

Inflows into equity mutual funds in June were much lower compared to the net inflow of ₹18,529 crore seen in May, data from the Association of Mutual Funds in India (AMFI) showed on Friday.

The lower quantum of net inflow from the previous month could be attributed to investors adopting the cautious path given the ongoing challenges to the investment environment.

Equity schemes have been witnessing net inflow since March 2021, highlighting the positive sentiment among investors.

Prior to this, such schemes had consistently witnessed outflows for eight months from July 2020 to February 2021, losing ₹46,791 crore.

All the equity-oriented categories received net inflows in June with the Flexi-cap Funds category being the biggest beneficiary with a net inflow of ₹2,512 crore. This was followed by the multi-cap fund that witnessed ₹2,130 crore net infusion.

The latest inflow comes at a time when the domestic equity market is reeling under severe pressure.

Besides foreign investors dumped Indian shares worth ₹50,203 crore in June, making it the worst net outflow in over two years, on an aggressive rate hike by the US Federal Reserve, elevated inflation accompanied by the higher valuation of domestic equities. This also marked the ninth consecutive monthly withdrawal by FPIs.

Apart from equity, 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 compared to a net withdrawal of ₹32,722 crore in the preceding month.

Overall, the mutual fund industry registered a net outflow of ₹69,853 crore last month, as compared to a net pull out of ₹7,532 crore in May.

The outflow pulled down the average assets under management (AUM) of the industry to ₹36.98 lakh crore at the end of June, from ₹37.37 lakh crore at May-end.