July sees significant surge in net inflow of Mutual funds against net outflow in June: IDBI Capital report

New Delhi [India], August 18 (ANI): The mutual fund industry experienced a remarkable resurgence in July 2024, with net inflows reaching at Rs 1.89 lakh crore, a significant recovery from the net outflow of Rs 43,637 crore observed in June 2024.

According to a report on mutual fund holding by IDBI Capital, the surge highlights a notable shift in investor sentiment and renewed enthusiasm for mutual fund investments across various schemes.

“In July’24 net inflow for the industry was at Rs1.89 Lakh Crore as against net outflow of Rs43,637 Crore in June ’24”, said the report.

The report also highlighted that the industry saw substantial changes across different types of mutual funds. The Income/Debt Oriented Schemes saw a dramatic turnaround, with net inflows of Rs 1.20 lakh crore in July compared to an outflow of Rs 1.08 lakh crore the previous month.

In another segment according to the report, the Growth/Equity Oriented Schemes experienced a net inflow of Rs 37,082 crore in July, although this was a slight decrease from the Rs 40,573 crore inflow recorded in June.

The Flexi Cap Funds saw a stable inflow of Rs 3,053 crore, marginally down from Rs 3,059 crore in June. This stability reflects steady investor interest in flexible investment options that adapt to changing market conditions.

The investment in Hybrid Schemes enjoyed a notable increase, with net inflows surging to Rs 17,436 crore in July from Rs 8,855 crore in June. This sharp rise suggests growing investor preference for diversified investment approaches that balance risk and return.

The Arbitrage Funds also saw a significant boost, with inflows climbing to Rs 11,015 crore compared to Rs 3,837 crore in the previous month. This surge indicates an increased appetite for funds that capitalize on market inefficiencies.

The report also noted that the Gold ETFs (Exchange-Traded Funds) saw inflows of Rs 1,337 crore, doubling the Rs 726 crore recorded in June. This increase reflects a heightened investor interest in gold as a safe-haven asset amid economic uncertainties.

The other ETFs experienced a decline in inflows to Rs 5,787 crore from Rs 9,134 crore the previous month. This drop suggests a potential shift in preference or a recalibration of investment strategies within the ETF space.

The FOF Investing Overseas faced a net outflow of Rs 366 crore, slightly higher than the Rs 330 crore outflow in June. This persistent outflow indicates ongoing cautiousness towards international investments.