WITHTHE HIGH EST-EVER figure off 15,584.57 crore,inflows into arbitrage funds continued to remain high for a third consecutive month in June and contributed significantly to the overall monthly inflows as investors remained cautious amid uncertainty.
According to Anand Vardarajan, chief business officer, Tata Asset Management, the entire FY25 sawnearly f50,000-crore inflows into arbitrage funds, and the number for this year is already f43,000 crore. It netted Rs 15,500 crore in June,suggesting that investors arc possibly willing to wait it out and buy on dips.Madhu Nair, CEO, Union Asset Management Company, said Income Plus Arbitrage FOF, a new sub-category under fund of funds, has seen encouraging traction from both institutional and retail investors.“This has led to strong flows into arbitrage and short-to-long-duration categories indirectly.”
Inflows into equity schemes also picked up after falling in May.They recorded inflows of f23,587 crore,driven by a 34% month-on-month increase into mid-caps at f3,754 crore, the highest since January, and a 25.2% rise in those into small-caps at f 4,02 5 crore.
Industry players said this suggests an increased risk appetite of investors.“Following the recent decline in markets, this robust activity suggests that investors are recovering confidence. A sustained investor optimism across asset classes, especially in the equities and hybrid categories, is reflected in the spike in inflow,” said Swapnil Aggarwal, director, VSRK Capital
On the debt side, Rs 1,711.47-crore outflow was recorded, but short-duration funds saw f10,276.75-crore inflow after the 50-bps rate cut.
According to Suranjana Borthakhur, head of distribution 8? strategic alliances, Mirae Asset Investment Managers, “Gold ETFs saw strong inflows amid global uncertainties while ELSS and thematic categories witnessed some softness, partly due to reduced NFO activity.” Overall,the data reflect resilient and diversified investor interest across segments.”
Inflows into gold ETFs rose over 600% from May to Rs 2,080.85 crore and those into thematic funds fell 76.8% to f476 crore.