New Delhi: Equity mutual funds maintained strong growth in August with a total inflow of Rs 38,239 crore, mainly fueled by thematic schemes. The amount of net inflow increased by 3 percent from the Rs 37,113 crore recorded in July. According to data from the Association of Mutual Funds in India (AMFI), the most recent inflow also represents the 42nd straight month of positive net inflows in equity funds, as reported on Tuesday.
There continues to be positive net flows with investments in SIP (Systematic Investment Plan) and NFO (New Fund Offering). Sector-specific or theme-based schemes experienced significant inflows thanks to New Fund Offers (NFOs). According to Manish Mehta, National Head of Sales, Marketing & Digital Business at Kotak Mahindra AMC, NFOs are the favored choice for investors looking to invest a lump sum in mutual funds because they offer the option to invest over a specific period of time.
In total, the mutual fund sector has seen a total investment of Rs 1.08 lakh crore for the month in question, a decrease from Rs 1.9 lakh crore in July. The industry's net assets under management increased with these inflows, reaching a record high of Rs 66.7 lakh crore at the end of August, up from Rs 65 lakh crore at the end of July.
As per the data, all categories except focused and equity-linked saving schemes (ELSS) had positive net inflows. In the category of equity schemes, sector or thematic funds received the largest net inflows of Rs 18,117 crore in the month being assessed. Nevertheless, the flow in the segment was lower than the amounts seen in July (Rs 18,386 crore) and June (Rs 22,352 crore). In August, debt-focused schemes saw inflows of Rs 45,169 crore, a decrease of 62 pc compared to the previous month's Rs 1.2 lakh crore.
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