Despite stock market volatility in June, net inflows into equity mutual funds (MFs) during the month jumped 26% over May to almost Rs 29,000 crore as investors poured money into mid- and small-cap funds ahead of other types of schemes.Gross flows through the SIP route also jumped to nearly Rs 31,800 crore, a three-month high figure, data released by Amfi, the fund industry trade body, showed. The highest gross monthly inflow through the SIP route at Rs 32,087 crore was recorded in March this year.

3-month high

This June, net inflows in equity funds was the 64th consecutive month of positive flows, starting from March 2021, Amfi said in a release.According to Venkat Chalasani, chief executive, Amfi, the June data is a sign of growing investor confidence and the increasing adoption of disciplined, long-term investing through the mutual fund route.June data showed that retail AUM, that includes total worth of assets under equity, hybrid and solution-oriented schemes, was at Rs 49.4 lakh crore, up from Rs 47.9 lakh crore in May.During the month, debt category witnessed a Rs 1.1 lakh crore net outflow as the quarter-end considerations by corporates, like advance tax payments, prompted those entities to withdraw funds from overnight, liquid and ultra short duration funds, industry players said.At an overall level, the fund industry’s net assets under management in June was at Rs 82.2 lakh crore, up marginally from Rs 81.6 lakh crore in May.Mid-cap funds recorded a net inflow of Rs 6,090 crore while the corresponding figures for small-cap and flexi cap funds were Rs 5,602 crore and Rs 5,231 crore, respectively.“Investors weren’t fleeing equities, they were rotating out of diversified/value mandates and into direct mid- and small-cap conviction bets during the (market’s) dip,” said Viraj Gandhi, CEO, Samco Mutual Fund.June data also showed strong inflows into gold ETFs with the net inflow at Rs 3,443 crore, compared to a net outflow figure of Rs 725 crore the previous month.