11-Sep-2023
2 mins read
August 2023 marked a significant milestone for the Indian Mutual Fund Industry, particularly in the equity mutual funds sector. With a major rise in inflows, the financial landscape has been rising. Let’s talk about the key takeaways from the latest data by the Association of Mutual Funds in India (AMFI).
Record-High Equity Mutual Fund Inflows
In August, equity mutual funds recorded a net inflow of Rs 20,245.26 crore, marking a five-month high. This is a substantial jump from the Rs 7,625.96 crore inflow observed in July 2023.
| Month | Net Inflow in Equity Mutual Funds (in crore) |
| Jul-23 | Rs 7,625.96 |
| Aug-23 | Rs 20,245.26 |
Decline in Debt Mutual Funds
Contrary to the equity sector, debt mutual funds experienced outflows amounting to Rs 25,872 crore during August, signaling a cautious approach from investors in this asset class.
ETFs Make a Comeback
Exchange-Traded Funds (ETFs) also made headlines with an inflow of Rs 1,893 crores in August, compared to an outflow of Rs 353 crores in the previous month.
Total Assets Under Management (AUM)
The Mutual Fund industry reported a slight increase in Total AUM, moving from Rs 46.37 lakh crore in July to Rs 46.63 lakh crore in August.
Category-Wise Fund Flows
| Inflows | Outflows |
| Small-Cap Funds: Rs 4,265 crore | Large-Cap Funds: Rs 348 crore |
| Multi-Cap Funds: Rs 3,422 crore | Focused Funds: Rs 471 crore |
| Mid-Cap Funds: Rs 2,512 crore |
Liquid and Debt Category
Liquid funds recorded an outflow of Rs 26,823 crore in August, whereas the debt category as a whole saw outflows of Rs 25,873 crore.
SIPs Hit All-Time High
Systematic Investment Plan (SIP) inflows in India reached an all-time high of Rs 15,814 crore, surpassing the previous month’s inflow of Rs 15,243 crore.
New Fund Offers (NFOs)
The NFOs in the mutual fund industry amounted to Rs 7,343 crore, showing an increase from the previous month’s Rs 6,723 crore.
Conclusion
August 2023 emerged as a landmark month for equity mutual funds in India, offsetting the subdued performance in the debt and liquid fund categories. With SIPs at an all-time high and new inflows in emerging categories, the Mutual Fund landscape in India is ripe with opportunities, yet also calls for cautious optimism.