The Association of Mutual Funds in India (AMFI) released the mutual fund data for the month of August. 

What Happened: AMFI data shows the inflows into Large-cap funds saw a huge increase in August as they had an inflow of ₹2,636.86 crore, a 293% increase from ₹670.12 crore in July.

Total inflows in mutual funds fell by 42% from ₹1.89 lakh crore in July to ₹1.08 lakh crore in August. Infows into equity mutual funds gained 3% to ₹38,239.16 crore. In July, the equity funds saw a ₹37,113.39 crore inflow. The decline in fund inflow was caused by a steep drop in debt fund inflow as debt fund inflows fell by 62% to ₹45,169.36 crore in August. 

Midcap funds saw an 85% increase to ₹3,054.68 crore. The small-cap fund saw a 52% jump to ₹3,209.33 crore. The sectoral and thematic funds saw a slight decline to ₹18,117.18 crore in the month.

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Among debt funds, liquid fund's inflow fell by 80% to ₹13,594.87 crore while money market fund inflow decreased by 64% to ₹10,093.26 crore. 

On the other hand, investments through systematic investment plans (SIPs) increased to ₹23,547 crore in August.

Akhil Chaturvedi, executive director & chief business officer, Motilal Oswal AMC said, "We are interestingly seeing investors balancing their asset allocation in favour of large-cap, Multicap and flexi-cap funds. Given the run-up in mid and small-cap space, managing risk is paramount today and from that perspective, this is a good development.

Thematic funds through NFOs are also garnering high inflows, and new themes trying to benefit from government reforms also offer the opportunity to participate through tactical allocation. SIPs continue to grow about 1% every month, this is very healthy for the long-term growth of the industry and investors to increase their equity allocation in a disciplined way."

“Pure active equity schemes have crossed 30 lakh crores in AUM across the industry during the month of August 2024,” said Madhu Nair, CEO, Union Mutual Fund. “Equity flows for the month of August 2024 have been a mix of SIP flows, NFOs and existing schemes. Thematic Funds still top the charts, while other categories like Large Cap Fund, Multi Cap Fund, Large & Midcap Funds and Midcap Funds have also seen good net flows,” she added.

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