Equity funds see record inflows of over Rs. 17,000 crore in July

Existing schemes collected Rs. 16,908 crore while new funds mopped up Rs. 254 crore.

Equity funds continued to be the preferred choice of investors in July. 

Investors poured in Rs. 17,162 crore in equity funds in July. Out of this, existing schemes, including arbitrage funds attracted Rs. 16,908 crore while new fund offers mopped up Rs. 254 crore. While the redemptions were slightly higher than June at Rs. 6,347 crore the industry managed to get net inflows of Rs. 10,815 crore. ELSS also saw net inflows of Rs. 30 crore.

Among the new fund offers, JPMorgan Emerging Markets Opportunities Equity Offshore Fund collected Rs. 11 crore while Birla Sun Life Emerging Leaders Fund - Series 3 and Sundaram Top 100 Series III together mopped up Rs. 254 crore.

With the improved market sentiments fund houses came up with a flurry of new fund launches, mostly closed end funds. The BSE Sensex is up 25% return YTD. According to Value Research, small and mid-cap funds have topped the performance chart which delivered 83% absolute return over a one year period followed by infrastructure funds which posted 75% return.

In the debt category, Axis Fixed Income Opportunities Fund collected Rs. 75 crore while closed end income funds mopped up Rs. 2,211 crore.

There were only 25 FMP launches in July as opposed to 43 launches in June. The category saw net outflows of Rs. 10,080 crore in July. Many AMCs stopped launching one year FMPs after the changes in tax structure in debt funds.

Liquid funds saw net inflows of Rs. 25,589 crore in July.

The total assets under management of the industry went up 3% from Rs. 9.74 lakh crore in June to Rs. 10.06 lakh crore due to inflows in liquid and equity funds.

Net inflows/outflows in July