Inflows in equity mutual funds sink to 10-month low

Retail investors were cautious in allocating money to equity mutual funds in August as the sharp rebound in the stock market saw valuations jump, seeing flows into equity mutual funds in August slowing to Rs 6,120 crore compared from July’s Rs 8,898 crore, according to data released by Association of Mutual funds in India (AMFI). This is the lowest inflow equity funds have witnessed in the last 10 months.

However, flows into mutual funds through the monthly systematic investment plans (SIPs) rose to Rs 12,693 crore, much higher than the previous month’s Rs 12,140 crore, suggesting investors were more comfortable spreading their bets on equities after the recent gains.

Mark to market gains in equity mutual funds along with inflows of Rs 49,164 crore into debt mutual funds saw the industry’s assets under management touch an all-time high of Rs 39.53 lakh crore.