AMFI Data: Equity Mutual Fund Inflows Decline 22% in August; Sectoral and Thematic Funds See Sharp Drop

The month of August saw a moderation in equity mutual fund inflows compared with July, according to data released by the Association of Mutual Funds in India (AMFI). While some categories managed to hold steady, most segments reported reduced flows, reflecting a shift in investor behaviour.

Equity Mutual Fund Inflows Decline 

Actively managed equity mutual funds recorded inflows of ₹33,430.37 crore in August, lower by 22% compared with ₹42,702.35 crore in July. The overall mutual fund industry too reported weaker numbers, with net inflows at ₹52,442.78 crore in August, sharply down from ₹1.79 lakh crore in the previous month.

Category-Wise Comparison 

A closer look reveals significant differences across fund categories. The steepest decline was observed in Sectoral and Thematic funds, where inflows dropped from ₹9,426.03 crore in July to ₹3,893.16 crore in August. Small Cap funds also saw a notable fall, sliding from ₹6,484.43 crore to ₹4,992.91 crore. Similarly, Large and Mid Cap funds declined from ₹5,034.71 crore to ₹3,325.66 crore.

In contrast, Large Cap funds stood out, improving from ₹2,125.09 crore in July to ₹2,834.88 crore in August, indicating a preference for relatively stable investments. Flexi Cap funds continued their steady run with inflows of ₹7,679.40 crore in August, slightly higher than ₹7,654.33 crore in July. Multi Cap funds, however, fell from ₹3,990.84 crore to ₹3,193.05 crore during the same period.

ELSS Funds Saw Modest Inflows in August 

Dividend Yield funds slipped into the red with outflows of ₹174.69 crore in August after recording modest inflows of ₹96.65 crore in July. ELSS funds, on the other hand, returned to positive territory with inflows of ₹59.15 crore in August, recovering from an outflow of ₹368.18 crore the month before. Value and Contra funds softened from ₹1,470.01 crore in July to ₹1,141.03 crore in August, while Focused funds declined from ₹1,605.96 crore to ₹1,155.18 crore.

Read More: How Did A ₹20,000 SIP in the UTI Flexi-Cap Fund Turn Into Nearly ₹16 Lakh in 5 Years?

Conclusion 

The August data indicate an overall slowdown in inflows across equity mutual fund categories. While Large Cap and Flexi Cap funds bucked the trend with stronger or stable inflows, most other categories faced reduced investor participation compared with July.

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