Mutual funds trends: Equity inflows drop 22% to Rs 33,430 cr in August; SIP momentum flat at Rs 27,000 cr

Equity mutual fund inflows fell 22% to Rs 33,430 crore in August, largely due to a sharp decline in new fund offers (NFOs), data from the Association of Mutual Funds in India (AMFI) showed on Wednesday. Despite the dip, August marked the 54th straight month of net inflows into equity schemes.In July, equity-oriented funds had recorded inflows of Rs 42,702 crore, aided by higher NFO activity, PTI reported. “The lower impact of new flow viz previous month roughly Rs 9,000 crore is to the extent of NFO’s which were higher in July than August. Rest the flow momentum is steady and healthy,” said Akhil Chaturvedi, executive director and chief business officer at Motilal Oswal AMC.“Given past trends, I was hoping for a higher SIP number which is now flat around Rs 27,000 crore. Broadly, Indian investors continue to add equities to their allocation despite global headwinds and FPIs selling, and this is very positive for the markets.” He added. Within categories, Flexi Cap Funds led the inflows at Rs 7,679 crore, followed by Mid Cap Funds (Rs 5,330 crore), Small Cap Funds (Rs 4,993 crore), Sectoral/Thematic Funds (Rs 3,893 crore) and Large Cap Funds (Rs 2,835 crore).Meanwhile, debt mutual funds saw withdrawals of Rs 7,980 crore in August. Overall, the mutual fund industry witnessed net inflows of Rs 52,443 crore, down from Rs 1.8 lakh crore in July. Industry assets under management stood at Rs 75.2 lakh crore at the end of August, nearly flat from Rs 75.36 lakh crore in July.