Inflows into equity schemes have hit a 5-month high of ₹20,246 crore in August against ₹7,626 crore in July as investors pumped in more money with marginal fall in equity valuations.
Moreover, six new fund offers had raised ₹5,002 crore through equity schemes last month, according to the Association of Mutual Funds in India data released on Monday.
Small-cap funds registered an inflow for the eleventh month in a row and attracted investment of ₹4,265 crore against ₹4,171 crore in July despite some of the fund houses restricting inflows due to concern on high valuations.
Large-cap, focused and ELSS funds have recorded an outflow of ₹349 crore (₹1,880 crore outflow), ₹471 crore (₹1,067 crore outflow) and ₹27 crore (₹592 crore outflow).
Of the ₹17,082 crore inflow into hybrid schemes, arbitrage and dynamic asset allocation funds recorded an inflow of ₹9,483 crore (₹10,075 crore) and ₹3,616 crore (₹419 crore).
Bellwether Sensex was down 1,697 points last month at 64,831 points against 66,527 in July.
Anand Vardarajan, Business Head, Tata Asset Management said investors are increasingly favouring the multi-cap route, signalling a shift in market dynamics while arbitrage category is also attracting strong inflows due to its tax efficiency.
Systematic investment plan set a new record on all the front. Inflows hit a new high at ₹15,814 crore (₹15,245 crore). New SIP accounts opened and discontinued was also at a high of 35.91 lakh and 19.58 lakh while SIP AUM set a new record at ₹8.47 lakh crore (₹8.32 lakh crore).
NS Venkatesh, CEO, AMFI said retail investors continue to invest in the equity markets through small ticket SIPs for building long-term wealth even as the industry continues to work to achieve ₹100 trillion in AUM over the next few years.
Overall, asset under management of the mutual fund industry hit a new high of ₹46.63 lakh crore (₹46.37 lakh crore).
Passive gold funds attracted a huge inflow of ₹1,028 crore for the first time in 16 months as the yellow metal prices softened.
Melvyn Santarita, Analyst-Manager Research, Morningstar India said gold prices in the recent times have come-off from its all-time high levels, thereby providing some buying opportunity, particularly after a sharp rally it witnessed since March this year, he said.
Debt funds saw an outflow of ₹25,872 crore largely due to liquid funds registering a withdrawal of ₹26,824 crore partially to make up for incremental Cash Reserve Ratio set by RBI.