In addition, July set records for several other MF heads. These include retail SIP accounts at nearly 4.2 crore, total assets under SIPs at over Rs 5 lakh crore, retail assets under management (AUM) at Rs 16.3 lakh crore, net retail flows at Rs 40,302 crore and net flows into equity funds at Rs 22,584 crore, a note from AMFI said.
According to AMFI chief executive N S Venkatesh, the RBI’s accommodative stance, healthier earnings growth, vaccination-driven steady containment of the pandemic and global & domestic liquidity helped equity markets to historic highs. “Taking cue, retail investors too are participating in the equity rally, largely through MF SIPs, on a continued rising quantum of record levels,” he said.
Data showed that during July, net inflow into all equity funds — at nearly Rs 22,600 crore — was its fifth consecutive month of positive inflow. The corresponding figure for the debt segment of the industry was almost Rs 73,700 crore. Hybrid schemes too witnessed net inflows of nearly Rs 19,500 crore, driven mainly by large flows into arbitrage funds.
NFOs too attracted strong interest among investors during the previous month. From 15 fund offerings that included four closed-ended ones, the industry mobilised a little over Rs 17,300 crore, AMFI data showed. According to Priti Rathi Gupta, founder of the investment platform for women LXME, growing economic activities and higher savings due to lower spending have also enabled investors to reserve discretionary income to invest.
Gupta further noted investors’ waning interest for gold ETFs with the July data showing a net Rs 61.5-crore outflow from these funds. “Investors seem to have lost interest in gold ETFs, mainly due to two reasons: Gold prices have been at an all-time high for a while, creating anticipation among investors for a price plunge. And due to attractive returns fetched by equity and debt funds, investors tend to divert their investments into these instruments,” she said in a note.