The total AUM of the industry saw a spike largely due to inflows in income and liquid funds
Mumbai: Inflows to the tune of Rs 51,128 crore from income funds and liquid funds pushed the mutual fund industry’s assets up 8 percent in July to Rs 7.28 lakh crore from Rs 6.73 lakh crore in June. Gold funds, ETFs, balanced funds and fund of funds also contributed marginally to this growth.
Income funds saw inflows of Rs 15,429 crore and liquid funds mopped up Rs 35,699 crore in July.
Gold ETFs continued to shine in uncertain times as investors saw gold as a safe haven. Gold ETFs saw Rs 234 crore net inflows while other ETFs mopped up Rs 384 crore inflows in July. Fund of funds also saw inflows of Rs 141 crore while gilt funds witnessed net outflows of Rs 85 crore. Balanced funds saw Rs 77 crore inflows in July.
Equity mutual funds recorded Rs 729 crore net outflows in July after seeing a marginal inflow of Rs 20 crore last month.
This financial year, equity funds recorded the highest inflows of Rs 1,546 crore in the month of May. ELSS saw Rs 140 crore outflows in July while in June this category recorded Rs 80 crore redemptions.
“As long as global uncertainties remain, gold and commodities will be the preferred risk diversification avenues. Equity redemption is largely due to uncertainty in the global environment. FII inflows have been positive in July which has resulted in ETF inflows,” says Ravi Gopalkrishnan, CIO - Equity, Pramerica Mutual Fund.
FIIs pumped in Rs 3,930 crore in Indian equities in July while DIIs were net sellers to the tune of Rs 199 crore.
Among the new fund offers, Birla Sun Life Nifty ETF collected Rs 12 crore while close ended schemes like FMP and capital protection funds collected Rs 5,080 crore.
