:::LALKAR GROUP::::

The inflow momentum in open-ended equity mutual funds witnessed a decline in July, according to the latest data released by the Association of Mutual Funds in India (AMFI). The open-ended equity mutual funds category saw a 8.61% drop in inflows to Rs 37,113.39 crore in July compared with Rs 40,608.19 crore in the previous month.

A slowdown in both large-cap and mid-cap fund investments contributed to the overall dip. Despite this, the equity fund category has maintained positive inflows for 41 consecutive months.

The month of July also saw a flurry of new fund offers (NFOs) with around 15 launches collectively garnering Rs 16,565 crore. Sectoral and thematic funds were the star performers in this space, raising Rs 9,790 crore.

While large-cap funds experienced a sharp 31% decline in inflows to Rs 670.12 crore, both mid-cap and small-cap funds also recorded a slowdown in new investments. However, small-cap funds still managed to attract net inflows of Rs 2,109.20 crore (down 7% over June) and mid-cap funds garnered Rs 1,644.22 crore (down 35% over June).

In a contrasting trend, hybrid funds witnessed a significant surge in inflows, jumping to Rs 17,436 crore from Rs 8,855 crore in June. Liquid funds also made a strong comeback, attracting Rs 70,060.8 crore after witnessing outflows of Rs 80,354 crore in the previous month.

Meanwhile, exchange-traded funds (ETFs) saw a decline in inflows to Rs 5,787.3 crore compared to Rs 9,134 crore in June. Sectoral and thematic funds, while still seeing inflows of Rs 18,386.3 crore, recorded a decrease from the previous month.

Dividend yield funds saw increased inflows at Rs 631 crore (versus Rs 520.07 crore in June). On the other hand, equity-linked savings schemes (ELSS) faced increased outflows of Rs 637.6 crore in July as against an outflow of Rs 445.37 crore in the previous month.

Corporate bond funds experienced a turnaround, with inflows of Rs 2,261 crore in July, contrasting with the Rs 3,469 crore outflow seen in June. This reversal highlights renewed investor interest in corporate debt securities.

Credit risk funds continued to see outflows, albeit at a moderated pace. The category saw an outflow of Rs 542.8 crore in July, widening from the Rs 478 crore outflow recorded in June. This continued outflow reflects cautious sentiment towards funds with higher credit risk.