Inflows in equity MFs drop from 14-month high in May to Rs 5,988 cr in June

Equity mutual funds witnessed a net inflow of Rs 5,988 crore in June, making it the fourth consecutive monthly inflow amid a rally in stock markets.

The inflows in June, however, were lower than Rs 10,083 crore in May which saw the highest fund infusion in 14 months, data from the Association of Mutual Funds in India showed on Thursday.

Equity schemes saw net inflow of Rs 3,437 crore in April and Rs 9,115 crore in March. Prior to this, equity schemes had consistently witnessed outflows for eight months from July 2020 to February 2021.

Inflows into equity and equity-linked open ended schemes were at Rs 5,988.17 crore in June.

Barring equity linked saving schemes (ELSS) and value funds, which saw withdrawal to the tune of Rs 792 crore and Rs 115 crore respectively, all the equity schemes witnessed inflow last month.

Within the categories of equity funds, mid-cap funds saw the largest net inflow at Rs 1,729 crore. This was followed by a net inflow of Rs 1,207 crore in thematic funds and Rs 1,087 crore in flexi cap funds.

Apart from equities, investors put in Rs 12,361 crore in hybrid funds in the month under review. This included Rs 9,060 crore in arbitrage funds.

Further, gold exchange traded funds (ETFs) witnessed net inflow of about Rs 360 crore last month, compared to Rs 288 crore in May.

In addition, investors infused Rs 3,566 crore in debt mutual funds last month after pulling out Rs 44,512 crore in May.

Overall, the mutual fund industry witnessed a net inflow of Rs 15,320 crore across all segments during the period under review, compared to an outflow of Rs 38,602 crore in May.

The asset under management (AUM) of the mutual fund industry rose to an all-time high of Rs 33.67 lakh crore in June-end from Rs 33 lakh crore in May-end.