Ashish Aggarwal | Mutual Fund News: These factors led to the surge in net inflows for equity mutual funds in August

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Mutual Fund News These factors led to the surge
in net inflows for equity mutual funds in August
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Equity mutual funds in India saw inflows of
?20,245 crore (2.78 billion) in August, driven
by a strong stock market performance. Experts
advise rebalancing portfolios and increasing
exposure to large-cap fundsun Equity mutual
funds inflows surged to ?20,245 crore in August,
the Association of Mutual Funds in India (Amfi)
data showed. Investors poured in a record ?15,813
crore in August through systematic investment
plans (SIP) last month.
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What factors have contributed to the surge in net
inflows for equity mutual funds?
Decoding the reasons behind the surge in net
inflows for equity mutual funds Mukesh Kochar,
National Head - Wealth Management, AUM Capital
attributed it to the result of an extraordinary
run-up in the equity market. The market has made
a tremendous move and it's been a great month for
mid small-cap performance. The flow from SIP is
consistent and at the same time, Family offices
and HNIs are also increasing equity allocation
given the performance and fear of missing out,"
said Mukesh Kochar.
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He further advised investors to rebalance their
portfolios by increasing exposure to large-cap
funds. We believe that there has been some
extraordinary run-up in small cap space and one
needs to be a little cautious on that. The flow
of money is going to chase stocks and that might
create some overvaluations in certain pockets,
particularly in small cap space. At the same time
large cap has not run up much. Due to overrun by
small-cap space the overall exposure must have
increased in this space which needs to be
rebalanced," added Kochar. A bullish or
optimistic stock market situation is one of the
key drivers of inflows into equities mutual funds
believes Ashish Aggarwal, MD, Acube Ventures.
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When stock markets perform well, investors are
more likely to invest in stocks, resulting in
increasing inflows into equity mutual fund
investments," said Ashish Aggarwal. Investors
are increasingly interested in quality mutual
funds that routinely surpass their benchmarks. As
youngsters enter the labour force and begin to
prepare for retirement, they frequently have more
time to invest and are able to allocate a greater
portion of their assets to stocks, added
Aggarwal. The MF industry's overall assets under
management (AUM) grew to ?46.93 lakh crore in
August. The overall AUM for retail investors'
bets on equity schemes was at ?24.38 lakh crore
portfolios as of last month.
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