The pace of flows into equity mutual fund schemes slowed in July as investors refrained from fresh purchases amid the rebound in the stock market. Flows into equity schemes in July dropped 42% to Rs. 8,898 crore from the previous month, according to monthly data released by the AMFI.
Debt schemes saw inflows of Rs. 4,93Equity mutual fund inflows slow in July despite rally0 crore after witnessing outflows of about Rs. 92,247 crore in the previous month. This along with mark to market gains in equity saw the industry’s total assets under management (AUM) rising to Rs. 37.77 lakh crore against Rs. 36.98 lakh in the previous month. Flows through systematic investment plans (SIPs) fell to Rs. 12,140 crore as against Rs. 12,276 crore in June.
“Investors are waiting for a correction. They are reluctant to put more money into equities in a high interest rate environment,” said G Pradeepkumar, CEO, Union Mutual Fund.