August equity MF inflows cross ₹20K cr to hit 5-month high

livemint.com:

NEW DELHI : Equity mutual funds attracted net inflows of ₹20,133.3 crore in August, the highest in five months, up 168.25% over July, according to latest data from the Association of Mutual Funds in India (Amfi). The strong traction in equity funds was led by mid-cap and small-cap funds which continued to attract investor interest during August even though large cap funds saw continued outflows amidst profit booking. “In the month of August, the equity markets exhibited a risk-on sentiment, which is also reflected in the mutual fund flow.

Small caps funds extended the positive trend into the current month with the highest net inflows, followed by thematic/sectoral funds and multicap funds," said Akhil Chaturvedi, chief business officer, Motilal Oswal AMC. Inflows in the small cap funds maintained a run rate of more than ₹4,000 crore for the third month in a row. At ₹4,264.82 crore in August, small cap fund inflows came slightly higher than ₹4,171.44 crore seen during July.

Mid-cap funds too saw healthy inflows at ₹2,512.34 crore, increasing from ₹1,623.33 crore in July. The ongoing robust rally in mid- and small-cap stocks has been supporting investor interest and flows towards these funds, said analysts. Meanwhile, large cap funds continued to see outflows, at ₹348.98 crore in August.

However, the pace of outflows declined when compared to July which had seen outflows worth ₹1,880 crore amidst profit booking. Thematic and sectoral funds saw inflows worth ₹4,805.81 crore which more than trebled over the previous month. Multicap funds also saw an almost 37% rise in inflows over July.