Equity mutual funds in India witnessed significant growth in August 2023, recording a net inflow of Rs 20,245 crores, marking a substantial surge compared to the Rs 7,626 crores observed in July, according to data provided by the Association of Mutual Funds in India (AMFI). This inflow represented the highest flows in the past five months.
In contrast, debt mutual funds saw a net outflow of Rs 25,872 crore during the same period. However, Exchange Traded Funds (ETFs) registered an inflow of Rs 1,893 crore in August, a significant increase from the Rs 353 crore outflow observed in July. Other schemes such as Index funds and Gold ETFs also registered inflows of Rs 1,986 crore and Rs 1,028 crore respectively.
Among all categories of funds, the net inflow was Rs 14,385 crore in August, compared to Rs 82,046 crore in July. The total Asset under Management (AUM) stood at Rs 46.63 lakh crore in August, showing a moderate growth of 0.57% from Rs 46.37 lakh crore in July.
Sectoral and thematic funds saw the highest inflows among the equity asset class during August, amounting to Rs 4,805.8 crores.
A total of 15 new mutual fund schemes were launched in August 2023, raising a total of Rs 7,531 crores. Among these, 14 were open-ended mutual fund schemes. New fund offers (NFOs) saw a significant increase in sales, up 117 percent from the three-month average.
The UTI Balanced Advantage Fund was the biggest grocer among the new funds, garnering Rs 2,247 crore in its NFO month. This was followed by the Mirae Asset Multicap Fund that garnered Rs 1,395 crore. The Bajaj Finserv Flexi Cap Fund also collected Rs 1,051 crore in its maiden month.
NS Venkatesh, CEO of AMFI, expressed optimism about India's economic growth and market expansion. He added that India's successful hosting of the G20 summit this year generated positive sentiments for the country and its economy on the global platform. As a result, he believes that the overall outlook for the mutual fund industry in India continues to be positive.
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