Equity MF inflows rise 63% in August but AUM falls

Investments into equity mutual funds rose by 63% to INR 96.25bn (US$1.44bn) last month from July, marking a 16th consecutive month of inflows, data from the Association of Mutual Funds in India (AMFI) shows.

Inflows into equity mutual funds jumped in August compared to July even as local shares suffered their worst monthly loss in nearly four years.

Investments into equity mutual funds rose by 63% to INR 96.25bn (US$1.44bn) last month from July, marking a 16th consecutive month of inflows, data from the Association of Mutual Funds in India (AMFI) shows.

The NSE Nifty fell by 6.6% last month, its worst performance since November 2011 as foreign institutional investors (FII) pulled out INR 168.77bn (US$2.5bn), their highest monthly sales on record.

But, despite higher inflows in August month-on-month, equity assets of India’s mutual funds (MF) shrank last month for the first time in 16 months.

According to AMFI data, equity assets under management (AUM) fell by 2.8% over July or by INR 11,000 crore to INR 3.83 lakh crore in August.