MF investors unmindful of volatility: The industry receives net inflows of Rs.15,500 crore in equity funds

All equity scheme categories recorded positive net inflows for the fifth consecutive month in June despite volatility in the market. SIP inflows have also remained unaffected by market conditions this year. In the first six-months of 2022, monthly SIP contribution has remained in the range of Rs. 11,500 crore to Rs. 12,300 crore. In June, the mutual fund industry received Rs. 12,276 crore through SIPs.

Industry executives believe the high SIP inflows showcase rising maturity among retail investors.

“These trends reflect signs of maturity in investors mindset. SIP contribution remaining above Rs 12,000 crore indicates better awareness among retail investors about long term orientation of equity investments,” said Akhil Chaturvedi, Chief Business Officer, Motilal Oswal AMC.

“Rising interest rates globally, weakening rupee, mixed start to monsoon in India and rising retail inflation has not deterred small savers from continuing to patronize SIP mode of savings,” said AMFI CEO NS Venkatesh.

However, the picture was completely opposite for debt funds last month. Except for a Rs. 37 crore net inflow in long duration funds, all other schemes posted net outflows. The highest outflows were recorded by shorter duration funds — overnight, liquid and ultra short. As per AMFI, the high outflows from these schemes were a result of redemptions by corporates for paying advance taxes (as June was the last month of the quarter).

Hybrid funds also recorded negative inflows due to high redemptions from arbitrage funds, which recorded a net outflow of Rs. 5,600 crore.

Other key highlights from AMFI's June 2022 data:

• Average AUM declines to Rs. 36.90 lakh crore from 37.40 lakh crore in May
• Index funds recorded net inflows of Rs. 7,300 crore while ETFs (excluding gold) received a net inflows of Rs. 5,360 crore
• The SIP AUM at the end of June 2022 stood at Rs. 5.51 lakh crore
• New SIPs registered during June 2022 stood at 17.92 lakh

Inflow data in brief: