The mutual fund industry experienced a turnaround in fund flows across various schemes in June 2024. According to data released by the Association of Mutual Funds in India (AMFI), the assets under management (AUM) of the industry rose to Rs 60.89 lakh crore. Systematic Investment Plan (SIP) contribution rose to Rs 21,262 crore in June, while it would have been Rs 20,904 crore in May. The number of new SIPs registered in June was 55,12,962, taking the total number of active SIP accounts to 8,98,66, 962.
The table below shows the SIP flows for the last four months
Now find the net flow according to the scheme.
Credit Oriented Scheme
The debt-focused schemes would have had a net outflow of ₹1,07, 357.62 crore, a sharp decline of 353.83% over the inflow in May 2024. This large outflow signals a shift away from debt-oriented investments.
Equity Oriented Scheme
The net investment in equity-based schemes in India in June would have been ₹40, 608.19 crore, an increase of 17.04 per cent over the previous period. Of this, multi-cap funds witnessed an inflow of Rs 4, 708.57 crore, registering a significant growth of 78.03 per cent, reflecting strong investor confidence in diversified equity investments.
Large-cap funds made a total investment of Rs 970.49 crore, registering a growth of 46.36 per cent. However, net inflows into small-cap funds declined marginally to Rs 2, 263.47 crore, down 16.93 per cent from the previous month. On the other hand, Value / Contra funds witnessed an inflow of ₹2, 027.05 crore, representing a 44.34 per cent increase in investor interest.Large-cap funds made a total investment of Rs 970.49 crore, registering a growth of 46.36 per cent. However, net inflows into small-cap funds declined marginally to Rs 2, 263.47 crore, down 16.93 per cent from the previous month. On the other hand, Value / Contra funds witnessed an inflow of ₹2, 027.05 crore, representing a 44.34 per cent increase in investor interest.
Against this, ELSS (Equity Linked Savings Scheme) was recorded at Rs 445.37 crore, down 78.29 per cent from the previous period. Sectoral / thematic funds clocked a net inflow of ₹22, 351.69 crore in June, registering a growth of 16.33 percent over the previous month, or underlining the strong sector-specific investor sentiment during the period.
hybrid plan
In May 2024, ₹17, 990.67 crore would have been invested in hybrid schemes. However, the figure dropped by 50.78 percent to Rs 8, 854.74 crore in the subsequent period. It highlights how a decline in investment itself can impact investor sentiment and market conditions or the performance of composite investment vehicles.
Solution plan
In June 2024, solution-oriented schemes received a total net inflow of ₹184.09 crore, which is 60.44% lower than May 2024, when the inflow would have been ₹465.39 crore. Of the schemes, the retirement fund saw a net inflow of Rs. 125.06 crore, a decline of 68.57 per cent since May. The Children’s Fund received a net inflow of ₹59.03 crore, which is 12.60 per cent lower than the previous month’s inflow.
Other plans
In June 2024, the Indian mutual fund industry experienced fluctuations in fund flows and investor preferences. The overall trend for the month showed a net outflow of ₹43, 636.55 crore from mutual funds, reflecting changing market dynamics and investor sentiment. In the equity category, there would have been a net inflow of ₹14, 601.80 crore in the miscellaneous schemes. Index funds attracted Rs 5, 071.82 crore, an increase of 12.95 per cent over the previous period. However, gold ETFs declined by Rs 726.16 crore, down 12.24 per cent, while other ETFs brought in Rs 9, 134.06 crore, down 14.55 per cent. Funds from funds investing abroad showed an inflow of Rs 330.24 crore, a decline of 6.23 per cent.
At the same time, the mutual fund market witnessed activity in new fund offers (NFOs), with 17 open-ended NFOs being launched in the month. NFO’s collectively raised ₹15,227 crore in investor funds, while regional and thematic funds raised ₹12,974 crore through nine new launches. Overall, the data for June 2024 shows a clear shift in investor preference towards equity-oriented funds despite the overall exit from the mutual fund industry. This change reflects broader market trends and investor behaviour that are influenced by economic conditions and investment treaties over time.
Key figures for June 2024
In June 2024, the mutual fund industry witnessed growth across various categories:
- Total Mutual Fund Folios: At an all-time high of ₹19,10,47, 118. Retail Mutual Fund Folios: Also, they rose from ₹14,89,54, 824 to a record high of ₹15,32,56, 488 in May 2024. Or the category includes equity, hybrid and solution oriented schemes.
- Equity fund inflows: A record 40 consecutive months of positive inflows since March 2021, reaching ₹40,608 crore. SIP contribution:
- A new record of ₹21,262 crore will be set in June 2024, which will be more than ₹20,904 crore in May 2024
The growth reflects strong investor interest in equity-oriented funds, hybrid and passive funds driven by effective investor education, robust distribution network and advancements in digital services in the mutual fund industry.
Disclaimer: Investment / trading in securities market is subject to market risk, past performance is not a guarantee of future performance. The risk of loss can be significant when trading and investing in the securities market, including equities and derivatives.
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