July Mutual Fund inflows steady despite market turbulence

Despite the turbulence in the market, mutual fund inflows have been largely steady. The mutual fund industry saw a total net equity inflow of Rs 8,092 crore in the month of July which translates to almost a seven percent uptick from June. This includes Rs 1,800 crore of NFO money (Kotak Focused Fund & Mirae Midcap Fund).

Given the market volatility, investors continue to favour large cap funds which have collected Rs 1,915 crore. Multi cap funds have however lost favour and just garnered Rs 327 crore versus Rs 1,835 crore in June as investors are seeking the safety of large caps and larger midcaps.

Balanced funds saw inflows at Rs 674 crore versus an outflow of Rs 1,910 crore in June. This is the first time in six months where the balanced funds reading has turned green and is thus another reflection of the market conditions where investors want the relative safety of some debt exposure alongside equity.