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Equity MF Inflows Slip 15% in July; Smallcap Funds Hit Record
Equity MF inflows fell 15% to Rs 24,697 crore in July. Smallcap funds drew a record Rs 7,768 crore; debt fund inflows lifted AUM to Rs 85.6 trillion.
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Net inflows into equity mutual fund schemes fell 15 percent month-on-month to Rs 24,697 crore in July, even as smallcap funds absorbed a record Rs 7,768 crore.
Smallcap inflows rose 39 percent from June. Midcap funds took in Rs 6,192 crore, putting the combined total for the two categories at Rs 13,437 crore, or 54 percent of all equity inflows in the month.
Largecap funds posted a net outflow of Rs 1,322 crore. All categories except multicap funds recorded lower net inflows.
"Money follows performance. Markets bottomed out in March, and since then mid and smallcaps have led the recovery, comfortably outperforming the broader market, while largecaps have lagged and dragged the index down. Flows have simply followed that pattern," said Santosh Joseph, chief executive officer, Germinate Investor Services.
"The willingness to deploy fresh capital into these categories also reflects investors' comfort with taking calculated exposure to higher-growth segments of the market. Besides, the recent recovery in the mid- and small-cap segments appears to have reinforced investor confidence," said Himanshu Srivastava, Principal, Manager Research, Morningstar Investment Research India.