Equity Mutual Fund Inflows Plunge Amid Global Turbulence

Equity mutual funds experienced a significant decline in inflows, falling by 22% to Rs 33,430 crore in August, due to a decrease in new fund offers and global economic uncertainties. Despite this downturn, it marked the 54th consecutive month of net inflows into the sector, with Flexi Cap Funds leading the gains.

In August, the inflows into equity mutual funds diminished significantly by 22%, totaling Rs 33,430 crore. This decline is attributed mainly to a reduction in new fund offers and persisting global macroeconomic uncertainties.

Despite the slowdown, August marked the 54th consecutive month of net inflows into equity funds. According to data from the Association of Mutual Funds in India, systematic investment plan (SIP) inflows slightly decreased to Rs 28,265 crore from the previous month's Rs 28,464 crore.

Sector-wise, Flexi Cap Funds emerged as a significant gainer, with record inflows of Rs 7,679 crore. However, sectoral or thematic funds saw a marked moderation, largely underlying the shifting investor sentiment amidst ongoing economic disturbances.

(With inputs from agencies.)