NEW DELHI, Sep 10: Equity mutual funds attracted nearly Rs 29,329 crore in net inflows in August, marking a rise of about 19 per cent from July and signalling continued investor interest in market-linked investment products.
According to data released by the Association of Mutual Funds in India, equity mutual fund inflows increased from Rs 24,697 crore in July to Rs 29,328.62 crore in August. The latest numbers indicate that investors continued to commit money to equities despite fluctuations in the broader market.
The strong inflow was supported by continued interest in small- and mid-cap funds. Small-cap schemes attracted around Rs 7,973 crore, while mid-cap funds received nearly Rs 6,989 crore during August. The trend suggests that investors remained willing to take exposure to segments offering higher growth potential, although these categories can also carry greater market risk.
One of the biggest highlights of the month was the continued strength of systematic investment plans. SIP contributions reached a record Rs 32,297 crore in August, up from Rs 31,961 crore in July. SIP assets under management also increased to around Rs 18.62 lakh crore, showing the growing scale of regular investment by households.
The steady rise in SIP contributions points to a growing preference among investors for disciplined, regular investing rather than relying entirely on one-time market investments. The consistency of SIP flows also provides mutual funds with a relatively stable source of domestic capital during periods of market uncertainty.
However, investor preferences were not uniform across all equity categories. Large-cap funds recorded an outflow of around Rs 1,147 crore in August, while small- and mid-cap schemes continued to attract substantial investments.
The latest figures underline the increasing role of mutual funds in India’s household savings and capital markets. Strong equity inflows, together with record SIP contributions, indicate that retail participation through mutual fund channels remains resilient.
For the mutual fund industry, sustained SIP growth is particularly significant as it reflects the growing adoption of regular investment habits among households. At the same time, the strong preference for small- and mid-cap schemes highlights the importance of investors considering their risk appetite and investment horizon before choosing market-linked products.
Overall, August data points to continued confidence in equity-oriented mutual funds, with domestic investors maintaining their participation even as market conditions remain dynamic.
