It said increase in redemptions by 74.9% month-on-month to Rs 14,200 crore led to a decline in net inflows in equities from Rs 5,600 crore in the previous month to Rs 300 crore in June, the lowest in four years.
The contribution of systematic investment plans (SIPs) declined for the third successive month to Rs 7,930 crore (down 2.4 per cent month-on-month). Notably, the contribution of SIPs has slipped below the Rs 8,000 crore mark for the first time since November 2018.
The report cited that the mutual fund industry’s asset under management (AUM) increased 3.8 per cent (Rs 1 lakh crore) month-on-month to Rs 25.5 lakh crore in June, primarily led by equity funds (Rs 52,800 crore) and income funds (Rs 50,300 crore).
Equity AUM (including equity linked saving schemes) of domestic mutual funds increased 7.7 per cent month-on-month to Rs 7.4 lakh crore in June. This was led by a rise in market indices (Nifty plus 7.5 per cent month-on-month) and increase in sales of equity schemes (up 6 per cent month-on-month to Rs 14,600 crore).
The month saw notable change in sector and stock allocation of funds. The weights of oil and gas, non-banking finance companies and banks (private and PSU) increased while that of healthcare, utilities, technology, consumer, capital goods, cement and chemicals moderated.