Equity Mutual Funds garner Rs 38,239 crore investment in August

Equity Mutual Fund schemes in India registered a net income of Rs 38,239 crore in the month of August 2024. The amount marks a 3 per cent growth compared to July this year, despite global geopolitical unrest and an ongoing slump in US economy setting off volatility in markets everywhere.

The August numbers are only behind June 2024 in this calendar year, when the net income recorded was Rs 40,608.

As far as fiscal year 2024-’25 (FY25) goes, Equity Mutual Fund schemes have earned nearly Rs 1.7 trillion till date. This is around 92 per cent of the entire collection in FY24, which was Rs 1.8 trillion.

A surge in Systematic Investment Plan (SIP) income and the impressive inflows that New Fund Offerings (NFOs) garnered are being attributed as the primary reasons for the good performance of Equity Mutual Fund schemes in August, despite a downslide in the equity market during the first week of the month.

SIP inflow hit an unprecedented high of Rs 23,547 crore, at a rate of 1 per cent on a month-on-month basis, while six NFOs earned Rs 11,067 crore upon closure last month.

In turn, the equity market rally of August triggered off more rapid growth in Assets Under Management (AUM) of equity schemes. In August, AUM increased to Rs 30 trillion, recorded at a growth rate of 28 per cent over five months. Overall, AUM of Equity Mutual Funds in the month accounted for 45 per cent of all assets managed by the industry. Consistency in mutual fund income will be significant for market stability.