Equity Mutual Fund Inflows Jump 19% to ₹29,000 crore in August, SIP Contributions Skyrocket
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Summarized by AI; it may make mistakes. Check important info
Indian retail investors poured ₹29,328.62 crore into equity mutual funds in August, marking a sharp 19% jump from July despite ongoing stock market volatility. Fresh data released by the Association of Mutual Funds in India (AMFI) highlights an unyielding appetite for risk, with small-cap and mid-cap schemes absorbing the lion's share of new money.
Fuelled by relentless retail participation, systemic investment plan (SIP) contributions hit a historic milestone of ₹32,297 crore during the month. The monthly surge fits into a broader trend revealed by SEBI data earlier this week, which showed net SIP inflows crossing ₹2 trillion in FY26. Net SIP collections accounted for nearly 56% of the ₹3.5 trillion gross SIP pool this financial year, beating the 54% share recorded in FY25.
Small-Caps and Flexi-Caps Lead Equity Rampage
High-growth funds dominated the preference list inside equity schemes. Small-cap funds pulled in the highest single category allocation at ₹7,973 crore, while mid-cap funds followed closely with ₹6,989 crore.
- Flexi-Cap Schemes: Absorbed ₹5,059 crore as investors sought diversified exposure across market capitalisations.
- Large & Mid-Cap Funds: Secured ₹3,873 crore in net additions.
- Exchange Traded Funds (ETFs): Registered ₹10,161 crore in total inflows, with equity ETFs capturing ₹7,237 crore and Gold ETFs drawing ₹2,597 crore.
Total Assets Under Management (AUM) for the mutual fund industry climbed over 1% month-on-month to reach ₹87.08 lakh crore by the end of August, while average monthly AUM settled at ₹88.31 lakh crore.
Debt Funds See Outflows While Liquid Assets Bounce Back
The broader mutual fund industry posted net inflows of ₹41,353.60 crore in August, though performance across asset classes remained highly uneven. Debt schemes experienced a net exit of ₹8,127 crore, heavily dragged down by overnight funds which saw redemptions worth ₹30,654 crore.
Conversely, corporate treasuries and institutional investors parked funds back into liquid schemes, driving a net inflow of ₹19,934 crore. Hybrid schemes maintained steady momentum by attracting ₹10,045 crore, steered primarily by arbitrage funds at ₹3,789 crore and multi-asset allocation funds at ₹3,671 crore.
