Investors pumped in over Rs 1 lakh crore into various mutual fund schemes in July, with liquid and income segments contributing most to the inflow.
This follows an outflow of Rs 21,535 crore in June.
According to the Association of Mutual Funds in India (AMFI) data, investors poured in a net of Rs 1,02,720 crore in MF schemes last month.
With this, the total net inflow in MF (mutual fund) schemes has crossed over Rs 1.93 lakh crore in April-July period of 2016-17.
In comparison, fund houses had witnessed an inflow of Rs 2.05 lakh crore in the year-ago period.
Liquid or money market funds category saw Rs 54,212 crore being brought in last month. Income funds too saw net inflows of Rs 43,913 crore. However, equity and equity linked schemes saw an inflow of Rs 2,500 crore.
Liquid funds mainly invest in money market instruments like commercial papers. They have a lower maturity period and do not have any lock-in period. An income fund focuses on current income, either on a monthly or quarterly basis, as opposed to capital appreciation.
“The hybrid category is continuing to witness good positive flows. While equity open-ended fund net sales are positive, purchase-to-redemption ratio is much better in the hybrid category. We are witnessing more flows in hybrid products, including balance funds... and other similar funds,” Bajaj Capital National Head Mutual Funds Anjaneya Gautam said.
The inflow is in line with BSE’s benchmark Sensex rising 3.7 per cent last month.
The huge inflow has also pushed the asset base of mutual fund industry, comprising 42 active players, to an all-time high of Rs 15.2 lakh crore at July-end from Rs 13.81 lakh crore in the preceding month.