Big Comeback for Mutual Funds in July 2024: Rs 1.89 Lakh Crore Inflows
In July 2024, the mutual fund industry experienced a remarkable resurgence with net inflows reaching Rs 1.89 lakh crore, a significant recovery from the net outflow of Rs 43,637 crore observed in June 2024. According to a report by IDBI Capital, this surge highlights a notable shift in investor sentiment and renewed enthusiasm for mutual fund investments across various schemes.
Income/Debt Oriented Schemes
The Income/Debt Oriented Schemes saw a dramatic turnaround, with net inflows of Rs 1.20 lakh crore in July compared to an outflow of Rs 1.08 lakh crore the previous month.
Growth/Equity Oriented Schemes
The Growth/Equity Oriented Schemes experienced a net inflow of Rs 37,082 crore in July, although this was a slight decrease from the Rs 40,573 crore inflow recorded in June.
Flexi Cap Funds
The Flexi Cap Funds saw a stable inflow of Rs 3,053 crore, marginally down from Rs 3,059 crore in June. This stability reflects steady investor interest in flexible investment options that adapt to changing market conditions.
Hybrid Schemes
The investment in Hybrid Schemes enjoyed a notable increase, with net inflows surging to Rs 17,436 crore in July from Rs 8,855 crore in June. This sharp rise suggests growing investor preference for diversified investment approaches that balance risk and return.
Arbitrage Funds
The Arbitrage Funds also saw a significant boost, with inflows climbing to Rs 11,015 crore compared to Rs 3,837 crore in the previous month. This surge indicates an increased appetite for funds that capitalize on market inefficiencies.
Gold ETFs
The report also noted that the Gold ETFs (Exchange-Traded Funds) saw inflows of Rs 1,337 crore, doubling the Rs 726 crore recorded in June. This increase reflects a heightened investor interest in gold as a safe-haven asset amid economic uncertainties.
Other ETFs
The other ETFs experienced a decline in inflows to Rs 5,787 crore from Rs 9,134 crore the previous month. This drop suggests a potential shift in preference or a recalibration of investment strategies within the ETF space.
FOF Investing Overseas
The FOF Investing Overseas faced a net outflow of Rs 366 crore, slightly higher than the Rs 330 crore outflow in June. This persistent outflow indicates ongoing cautiousness towards international investments.
Doubts Revealed
Mutual Funds -: Mutual funds are a way for people to invest their money together in a variety of things like stocks or bonds. A professional manager decides where to put the money to try to make it grow.
Inflows -: Inflows mean money coming into something. In this case, it means people are putting their money into mutual funds.
Rs 1.89 Lakh Crore -: Rs 1.89 Lakh Crore is a very large amount of money. In India, ‘Lakh’ means 100,000 and ‘Crore’ means 10 million. So, Rs 1.89 Lakh Crore is 1.89 trillion rupees.
Income/Debt Oriented Schemes -: These are types of mutual funds that invest mainly in things like bonds or loans, which pay regular interest.
Growth/Equity Oriented Schemes -: These mutual funds invest in stocks of companies, hoping that the value of these stocks will go up over time.
Flexi Cap Funds -: Flexi Cap Funds are mutual funds that can invest in companies of any size, whether they are big, medium, or small.
Hybrid Schemes -: Hybrid Schemes are mutual funds that invest in a mix of stocks and bonds to balance risk and reward.
Arbitrage Funds -: Arbitrage Funds try to make money by taking advantage of price differences in different markets or forms of the same asset.
Gold ETFs -: Gold ETFs are mutual funds that invest in gold. ETF stands for Exchange-Traded Fund, which means you can buy and sell shares of it on the stock market.
FOF Investing Overseas -: FOF stands for Fund of Funds. These are mutual funds that invest in other mutual funds, and ‘Investing Overseas’ means they put money into funds in other countries.