India’s equity fund inflows hit Rs 406.08 billion in June: AMFI

India’s equity mutual funds registered a record surge to hit Rs 406.08 billion in inflows during the month of June, at a sequential growth rate of 17 per cent, according to data released on Tuesday by the Association of Mutual Funds in India, or AMFI.

Continued mutual fund inflows since February 2021, along with stable earnings and the most rapid macroeconomic growth among all the large economies, was primarily the reason that the NSE Nifty 50 recorded an increase of nearly 65 per cent since February 2021.

June was the best month for the benchmarks Nifty 50 and BSE Sensex. Both indices saw a surge of 7 per cent each.

In terms of investments, the net inflows for equity mutual funds coming from domestic investors since February 2021 was around Rs 5.99 trillion. The figure was much higher than net inflows coming from foreign investors, at Rs 333.61 billion during the same period.

Inflows to Systematic Investment Plans (SIPs) registered a record by touching Rs 212.62 billion. June was the 12th month in a row when SIPs reached an all-time high. Meanwhile, thematic or sectoral funds saw maximum inflows among equity mutual fund schemes in June, just as it was the case in May, at Rs 223.52 billion.

Large-caps, or large market capitalisation, dominated the markets in June, mainly powered by stability and continuity of policy, rising to Rs 9.7 billion at 46 per cent. On the other hand, small and mid-caps moderated, at rates of 16 per cent and 3 per cent to touch Rs 22.63 billion and Rs 25.28 billion respectively.

Diversified equity funds, or multi-caps, where investors seek to minimise risk of exposure to a limited number of stocks, witnessed inflows worth Rs 47.09 billion at a 27-month high.