India equity mutual fund inflows fall 15% in July

Net investment in equity mutual fund schemes in India fell by 15 percent month-on-month in July, totaling 24,697 crore rupees. This decline is attributed to investor caution regarding high valuations and limited returns in certain segments.

Despite the overall drop in equity inflows, small-cap and mid-cap funds saw significant activity. Small-cap funds recorded a record 7,768 crore rupees in net investment, while mid-cap funds received 6,192 crore rupees. Systematic Investment Plan (SIP) contributions remained resilient, rising slightly to 31,961 crore rupees, marking the fifth consecutive month exceeding the 31,000 crore rupee threshold.

The broader mutual fund industry saw a shift toward debt-oriented schemes. Total net investment in the industry reached approximately 2.36 lakh crore rupees in July, driven largely by liquid, overnight, and money market funds. Consequently, total Assets Under Management (AUM) for the mutual fund industry grew by 4.3 percent month-on-month to reach 85.76 lakh crore rupees.