Anand Vardarajan, Chief Business Officer, Tata Asset Management
The latest AMFI numbers indicate lower flows in debt due to significant volatility, with yields rising sharply last month. Surprisingly, money market funds experienced a dramatic decline in inflows, slipping from Rs. 42,000 crores in July to just Rs. 2,000 crores in August.
On the equity side, Flexicap continued to witness strong interest observed over the past couple of months.
Thematic and sector funds have lost some of their momentum, while hybrid funds have shown steady flows. The asset allocation of arbitrage funds see strong preference..
Gold has seen a surge in market interest, with inflows reaching Rs. 2,200 crores in August, making it one of the highest inflow months in recent history. Precious metals continue to attract investor attention, driven by strong recent performance.
In terms of New Fund Offers (NFOs), there were fewer launches in August, which likely contributed to the lower overall inflows, with net flows dropping from Rs. 42,000 crores in July to Rs. 33,000 crores in August.