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Below the Perspective on AMFI Data by Mr. Akhil Chaturvedi, Chief Business Officer, Motilal Oswal Asset Management Company

“The record inflows in equity funds for June were driven by steady SIP flows, robust NFO collections, and lumpsum purchases during corrections. Investors shrugged off election results related volatility and as the uncertainty over government formation cleared, investors used the correction to add to their exposures. Overall, growing confidence among investors has spurred repeat investments contributing to this upward trend in flows and overall industry growth. We believe, investors have come of age and are using short term volatility as advantage for long term wealth creation. With budget around the corner, investor continue to be positive about their investments.

In June, equity fund inflows surged by 17% to reach Rs 40,608 crore, marking a new high and reflecting investor optimism towards the market. Within the equity fund category, multicap funds experienced 78% rise in inflows to Rs 4,708.57 crore, while investments into largecap funds increased by 46% to Rs 970.49 crore. Notably, Sectoral/Thematic Funds attracted the highest inflows among equity funds, amounting to Rs 22,351 crore in June building up on Rs 19,213 cr of flows in May. This increase was largely propelled by inflows into sectoral/thematic new fund offers, which accumulated Rs 12,974 crore during the month. SIP inflows also continued to inch higher at Rs 21,262 crores; a rise of 1.70% from previous month.”

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