40% decline in net equity inflows despite Rs. 12,000 crore SIP inflows

Net inflows in equity schemes declined over 40% in July to Rs. 8,900 crore from Rs. 15,500 crore in June due to decline in gross inflows to Rs. 22,650 crore compared to Rs. 27,500 crore a month before, shows latest AMFI data.

The inflows have shrunk substantially despite monthly SIP inflows remaining almost stagnant at Rs. 12,100 crore.

Industry officials say the slump in net equity sales could be due to profit booking by investors.

“Investors seem to have taken some profits off as markets went up, resulting in net sales in equity plummeting to Rs. 8,898 crore vs Rs. 15,497 crore in June. We might have witnessed net negative sales in July had SIP inflows not been strong,” said Akhil Chaturvedi, Chief Business Officer, Motilal Oswal AMC.

However, the overall net inflows have improved. In July, the industry received a net inflow of Rs. 23,600 crore compared to an outflow of Rs. 70,000 crore in June. The positive inflows are a result of some debt fund categories turning positive in July as against June when every debt fund category was in the red.

In the debt space, the highest net inflows were received by overnight funds at Rs. 20,000 crore followed by ultra-short duration fund at Rs. 3,700 crore. On the equity side, smallcap funds recorded the highest net inflows at Rs. 1,800 crore followed by flexicap funds (Rs. 1,400 crore).

Hybrid funds witnessed net outflows of Rs. 5,146 crore mostly due to Rs. 6,400 crore net outflow from arbitrage funds.

Inflow data in brief:

*All numbers are in Rs crore