Equity inflows at 10-month low in Aug, exchange traded funds gain traction

Average AUM for industry rose to Rs 39.5 trn, compared to Rs 37. 8 trn in July

Equity-oriented mutual fund (MF) schemes received net inflows of Rs 6,120 crore in August, lowest since October 2021—and the third of average monthly inflows received during the first eight of the calendar year.

Industry players said concerns around lofty valuations and profit-taking following a sharp rebound from June lows could have weighed on inflows.

Debt-oriented schemes received net flows of Rs 49,164.29. Hybrid schemes, which invest in a mix of debt and equity, saw net outflows of Rs 6,602 crore. Exchange traded funds (ETFs) continued to gain traction with net inflows of Rs 15,069 crore.

The average assets under management (AUM) for the industry rose to Rs 39.5 trillion in August compared to Rs 37. 8 trillion in July. Average AUM for the equity segment rose to Rs 14.56 crore, while for the debt segment was at Rs 13.4 trillion.