Amfi data released for the month of July said investors withdrew a net Rs 2,480 crore from equity-oriented funds thanks to a selloff in almost all categories. Equity mutual funds saw a total inflow of Rs 14,141 and outflow of Rs 16,622 crore.
This is the fourth straight month of fall in inflows in the equity mutual funds.
Strong outflows and an opportunity to book profits in overvalued stocks forced domestic institutional investors, which mostly comprise mutual fund managers, to sell shares worth Rs 10,008 crore in July. This is at the time when FIIs have been pouring money in Indian stock markets.
Debt mutual fund schemes, on the other hand, saw a strong inflow of funds, with a net investment of Rs 91,391 crore. Liquid funds, short-duration funds, low duration fund and corporate bond fund stood out with net inflows in excess of Rs 10,000 crore for the month.
Total AUM of the mutual fund industry rose Rs 89,812.78 crore to Rs 27.11 lakh crore. A part of the gain also reflects mark-to-market gains for the industry.