Equity MF Inflows: Record High Equity Mutual Fund Inflows in June | Bengaluru News
DailyBubble: Equity Mutual Fund Inflows Hit Record High in June
In a positive sign for India’s financial markets, inflows into equity mutual funds reached a record high of Rs 40,608 crore (about $5 billion) in June, marking a 17% increase from the previous month. This data, released by the Association of Mutual Funds in India (Amfi), highlights the growing interest of domestic investors in the equity market.
Since February 2021, domestic investors have poured in a total of Rs 5.9 trillion into equity mutual funds, surpassing net foreign inflows of Rs 33,360 crore over the same period. The NSE Nifty 50 benchmark index has also seen a significant 65% increase over the last 40 months, driven by sustained mutual fund inflows, strong earnings, and robust macroeconomic growth.
Notably, inflows into large-cap equities surged by 46% to Rs 970 crore in June, reaching a three-month high. This trend was supported by policy continuity and macroeconomic stability. In contrast, inflows into small-cap and mid-cap stocks moderated by 16% and 3% respectively, at Rs 2,263 crore and Rs 2,528 crore.
Harsha Upadhyaya, Chief Investment Officer and President at Kotak Mahindra Asset Management, explained that investors have been shifting their focus towards small- and mid-cap funds in pursuit of higher returns. However, with valuation excesses becoming more prominent in these segments, investors are now diversifying their allocations towards large- and multi-cap funds.
Multi-cap or diversified equity funds, designed to minimize exposure to individual stocks, attracted inflows worth Rs 4,709 crore in June, marking a 27-month high. Sectoral or thematic funds also saw significant investor interest, with inflows totaling Rs 22,352 crore.
The stock markets reflected this positive sentiment, with the Nifty 50 and BSE Sensex indices rising by 7% each in June, marking their best month of the year so far. Small-cap stocks also performed well, gaining 9.7% and 7.8% respectively during the same period.
In conclusion, the surge in equity mutual fund inflows in June indicates growing confidence among investors in the Indian stock market. With a focus on large-cap stocks and diversified funds, investors are navigating the market with a strategic approach to maximize returns and manage risks effectively.