‘Rotating, not fleeing’: investors shift to mid- and small-cap funds during June’s dip
Fund managers say investors rotated into mid- and small-cap funds rather than exiting equities during June's market dip, as Amfi data showed a 26% jump in net equity inflows.
‘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 of Samco Mutual Fund, describing the pattern behind June’s mutual fund flows.
Data released by Amfi, the fund industry trade body, showed net inflows into equity mutual funds jumped 26% over May to almost Rs 29,000 crore in June, despite stock market volatility during the month. Mid-cap funds recorded a net inflow of Rs 6,090 crore, while small-cap and flexi cap funds saw net inflows of Rs 5,602 crore and Rs 5,231 crore, respectively.
Gross flows through the SIP route also jumped to nearly Rs 31,800 crore, a three-month high, just short of the Rs 32,087 crore recorded in March, this year’s highest figure. June marked the 64th consecutive month of positive net flows into equity funds, a streak stretching back to March 2021.
Venkat Chalasani, chief executive of Amfi, said the June data reflects growing investor confidence and the increasing adoption of disciplined, long-term investing through the mutual fund route.
Retail assets under management, covering equity, hybrid and solution-oriented schemes, rose to Rs 49.4 lakh crore in June from Rs 47.9 lakh crore in May. The debt category, meanwhile, saw a Rs 1.1 lakh crore net outflow, as quarter-end considerations such as advance tax payments prompted corporates to withdraw funds from overnight, liquid and ultra short duration schemes, industry players said.
Leave a Reply