(source : ANI) ( Photo Credit : ani)
Mutual Fund Inflows Dip in August: What Investors Need to Know
Hey there, if you’re keeping an eye on mutual funds in India, August brought some mixed news. Equity mutual fund inflows, including hybrid schemes but skipping arbitrage funds, fell to Rs 424 billion. That’s a sharp 25% drop from the previous month and an 8% slide compared to last August, as per fresh data from JM Financial.
The main culprit? A weaker lineup of new fund offerings (NFOs). These NFOs drove a whopping 61% of the Rs 142 billion month-on-month decline in net inflows. In fact, equity and hybrid NFO inflows shrank to just Rs 22 billion in August, down from a robust Rs 109 billion in July. Some notable launches included the Kotak Active Momentum Fund, Bank of India Mid Cap Fund, Bajaj Finserv Equity Savings Fund, and 360 ONE Multi Asset Allocation Fund.
But not everything’s gloomy. Systematic Investment Plan (SIP) inflows held steady at Rs 282.7 billion – a tiny 0.7% dip from last month, yet a solid 20% jump year-over-year. This shows retail investors in India are sticking with their SIP strategies amid market ups and downs.
Arbitrage funds kept drawing crowds too, pulling in Rs 67 billion, just a bit less than the Rs 73 billion from July. Overall, gross sales for mutual funds eased to Rs 773 billion from Rs 977 billion in July, while redemptions dropped to Rs 350 billion – the lowest so far in FY26.
Breaking it down by segments, thematic funds took the biggest hit, with inflows tumbling to Rs 39 billion from Rs 94 billion last month. That drop reflects the NFO boost from July fading out. Small-cap funds also saw a Rs 15 billion decline, thanks to the high base set by Bajaj Finserv’s NFO in the prior month.
Equity assets under management (AUM), including arbitrage, stayed flat at Rs 43.8 trillion. Market dips shaved off 1.5%, but net inflows added a 1.1% lift to balance it out.
Shifting to debt mutual funds, things cooled off with outflows of Rs 18 billion. Liquid funds flipped to a Rs 62 billion outflow after a strong July performance.
Overall, while equity mutual fund inflows in India faced headwinds in August 2025, steady SIPs and arbitrage interest hint at resilient investor sentiment. Keep watching for September trends!
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