Mutual funds witness equity inflow for second straight month, but it's lower MoM: AMFI data

Equities see inflows for the second straight month in June, but it’s lower month-on-month, data from the Association of Mutual Funds in India (AMFI) showed on Thursday.

June inflows stood at Rs 4,608.7 crore vs Rs 9,235 crore last month. The ETF inflows came in at Rs 3,012.6 crore, credit risk inflow came in at Rs 236.7 crore and debt scheme inflow stood at Rs 3,566.4 crore, while total AUM stood at Rs 33.67 lakh crore, the data showed.

Small cap funds saw a huge decline in inflows last month. They saw a net inflow of Rs 705 crores in June compared to Rs 1,080 crore in May. Apart from mid cap funds, all other categories like large caps, multi caps and ELSSs saw sharp decline in inflows in the month of June.

CNBC-TV18 spoke to Swarup Mohanty CEO at Mirae Asset Global Investments and Sunil Subramaniam M-D & CEO at Sundaram Mutual Fund to decode the numbers.

On equity inflows, Mohanty said, “I think it is just state of the market and two things which stand out for me is obviously the gross sales have been higher than the previous two months but the redemptions have gone up so people are taking both the sides of the story but what is striking is the very strong past performance or the near-term past performance of the midcap attracting a lot of money post that performance.”