Debt funds see Rs 1.1 lakh crore outflow as fund industry AUM hits Rs 82.2 lakh crore

India’s debt mutual fund category saw a Rs 1.1 lakh crore net outflow in June, as quarter-end considerations by corporates, including advance tax payments, prompted entities to withdraw funds from overnight, liquid and ultra short duration schemes, industry players said.

The outflow came even as the broader fund industry grew. According to data released by Amfi, the fund industry trade body, the industry’s overall net assets under management stood at Rs 82.2 lakh crore in June, up marginally from Rs 81.6 lakh crore in May.

Equity mutual funds saw net inflows jump 26% over May to almost Rs 29,000 crore in June, despite stock market volatility during the month, with investors favouring mid- and small-cap funds. 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, and June marked the 64th consecutive month of positive net flows into equity funds, a streak stretching back to March 2021. 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.

Venkat Chalasani, chief executive of Amfi, said the June data reflects growing investor confidence and increasing adoption of disciplined, long-term investing through the mutual fund route.