The Indian mutual fund industry witnessed a net inflow of Rs 23,604.92 crore during the month of July 2022. The number of systematic investment plan (SIP) accounts were at an all-time high of 56.1 million (56,194,348) in July 2022, according to data released by the Association of Mutual Funds (Amfi) on August 8.
The number of SIP accounts in June were 55.4 million (55,488,825).
The net assets under management (AUM) as of July 31 stood at Rs 37.74 lakh crore (Rs 37,74,803.20) and on a year-on-year (y-o-y) basis, it was up by 7 per cent.
N S Venkatesh, chief executive, Amfi said, “Continued retail investor interest, as reflected in all-time SIP AUMs, crossing the Rs 6 lakh crore milestone for the first time ever, and also continued monthly SIP contribution of over Rs 12,000 crore, reinforces mutual funds as a preferred investment avenue.”
Here Are The Other Trends Observed In July
Mutual Fund Folio: Amfi observed that the number of mutual fund folios rose by 29 per cent (30 million) to 135.5 million, up from 105.4 million in July 2021, on a yearly basis. However, the number of folios grew by 1 per cent when compared on a monthly basis. The total retail mutual fund folio as of July, 2022 was also at an all-time high at 108 million despite a volatile month
Retail Investment Sentiment: Amfi highlighted another key statistical data regarding the sentiment of retail investors in mutual funds. It said that the month of July was the 17th consecutive month since March 2021 when retail investor net inflow in mutual funds had remained positive.
Data showed that retail investors redeemed mutual fund investments worth Rs 28,592 crore and invested Rs 32,439 crore in various mutual funds. Thus, the net inflow of retain retail investment was positive by a total of Rs 3,847 crore, taking into difference the amount of investment and redemption.
Manish Mehta, Head, sales, marketing and digital business, Kotak Mahindra AMC, said, “While the industry net sales are lower compared to previous month's, our MFD partner interactions suggest that investors both new and existing find investing through mutual funds most suitable for the long term.”
Equity And Related Fund Wise Investing Trend: According to the report, arbitrage funds were the only equity funds which saw a net outflow of investments of Rs 6,407.55 crore. Apart from this, the net inflow of investments in other schemes (index funds, gold exchange-traded funds (ETFs), overseas fund of fund, others), surpassed investments in equity, hybrid and solutions oriented schemes at Rs 14,270.56 crore.
Equity funds saw a net inflow of Rs 8,898.25 crore, with small cap funds witnessing the biggest net inflow at Rs 1,779.45 crore.
The big net outflow in arbitrage funds dragged the overall hybrid equity funds’ investment flow, the report added. As a result, despite every other hybrid mutual fund category recording positive inflow, the drag in arbitrage funds made the overall hybrid category of funds record a net outflow of Rs 5,146.33 crore.
“Positive flows in almost all categories of mutual fund schemes barring hybrid funds stand in good stead, as the economic recovery would pace up in the next few quarters,” Venkatesh added.
Debt And Fixed Income Fund Wise Investing Trend: Overnight mutual funds, which invest in short term bonds and papers saw the biggest net inflow of investments at Rs 19,918.66 crore for the month of July, while liquid funds saw the most net outflow of funds at Rs 7,692.65 crore.
The net inflow for income or debt schemes was Rs 4,930.08 crore.
Retail Fund Wise Trend
According to Amfi, the net AUM totalled Rs 19.38 lakh crore (19,38,220 crore) under retail equity schemes, including equity, hybrid and solutions oriented schemes. The monthly SIP contribution by retail investors were Rs 12,139.79 crore, and the number of SIP accounts as of July were at an all-time high of 56.1 million.
Additional inputs from Neelanjit Das