15,498 crore inflow into equity funds; In June, even in unstable climate

Mumbai With strong inflows of Rs 15,498 crore in the fund in June, investors’ preference for equity mutual funds continues amid alarming volatility in the capital market. Equity funds maintained positive inflows for the 16th consecutive month, according to data released by the Association of Mutual Funds in India (AMFI) on Friday.

Net inflow of equity funds stood at Rs 18,529 crore in May. In comparison, net investment remained positive despite a decline of 16.3 per cent in June. Global geopolitical developments, raising interest rates by central banks around the world to control inflation, selling of shares by foreign institutional investors have resulted in a sharp fall in the real market.

For 16 consecutive months since March 2021, the net inflows into equity schemes have been increasing as compared to the previous month, reflecting the positive sentiment among investors regarding equity investments. Earlier, during the eight months from July 2020 to February 2021, there was a total loss of Rs 46,791 crore due to continuous issuance of equity linked schemes.

June inflows were positive across all categories of equity-linked schemes, with the flexi-cap fund category being the biggest beneficiary with a net inflow of Rs 2,512 crore. Besides this, the multi-cap fund made a net investment of over Rs 2,130 crore.

On the other hand, investments worth Rs 92,247 crore were withdrawn from mutual funds during the month under review. Its net investment in May was Rs 32,722 crore. Of the total mutual funds, Rs 69,853 crore was raised in June. Only Rs 7,532 crore was withdrawn in May. At the end of June, the total assets under management of mutual fund families fell from Rs 37.37 lakh crore to Rs 36.98 lakh crore.

Foreign investment outflow from capital market

The month of June was the worst performance for the capital markets in the last two years. Foreign institutional investors sold shares worth Rs 50,203 crore during the month under review. For the ninth month in a row, foreign investors preferred buying and selling of shares by the US Federal Reserve over higher valuations of domestic stocks.

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