The net inflow into equity mutual funds surged 24 per cent to Rs 23,587 crore in June, reversing the declining trend of the last five months, driven by strong equity market performance across segments, data released by the Association of Mutual Funds in India (AMFI) showed on Wednesday. Also, the latest fund infusion by investors marks the 52nd consecutive month of net inflows into the segment. Additionally, a healthy growth was witnessed in SIP (Systematic Investment Plan) inflow at Rs 27,269 crore during the month under review, an increase from Rs 26,688 crore in May. “There is confidence amongst retail investors which is reflected through the incremental flows, this is very healthy and positive for the industry and Indian markets,” Akhil Chaturvedi, Executive Director & Chief Business Officer of Motilal Oswal AMC, said. According to the data, equity-oriented mutual funds saw an inflow of Rs 23,587 crore in June, way higher than the Rs 19,013 crore inflow seen in May. This was the first increase in net equity fund inflows after five straight months of decline.
The net inflows continuously declined from Rs 41,156 crore in December to Rs 39,688 crore in January, Rs 29,303 crore in February, Rs 25,082 crore in March, and Rs 24,269 crore in April. Prior to this downward trend, inflows stood at Rs 35,943 crore in November. “This rebound underscores a resurgence in investor confidence, supported by a strong equity market performance across segments. Broad-based market gains, including a surge in the Nifty 50 index and even stronger rallies in the mid- and small-cap indices, helped reignite interest in equity investments,” Himanshu Srivastava, Associate Director – Manager Research at Morningstar Investment Research India, said. While most equity segments posted healthy inflows in June, equity-linked savings schemes (ELSS) were the only category to record a net outflow of Rs 556 crore. Within equity fund categories, Flexi Cap Funds recorded the highest inflows in June, attracting Rs 5,733 crore. In addition, Small Cap Funds (Rs 4,024 crore) and Mid Cap Funds (Rs 3,754 crore) registered robust inflows. Besides, Large Cap Funds saw net inflows of Rs 1,694 crore.