Key facts
- Indian investors poured a record amount into mutual funds through monthly savings plans in August.
- Overall equity mutual fund inflows in India jumped 18.8% month-on-month to 293.29 billion rupees in August.
- Inflows via systematic investment plans (SIPs) rose 1.1% to a record 322.97 billion rupees in August.
- Small- and mid-cap funds saw record high monthly buying in August.
- Large-cap funds experienced outflows of 11.47 billion rupees in August.
- Inflows into gold ETFs jumped 67% month-on-month to 25.97 billion rupees in August.
Indian investors continued to allocate capital to mutual funds in August, with monthly savings plans reaching a record high despite market volatility, according to data from the Association of Mutual Funds in India. Overall equity mutual fund inflows increased by 18.8% from the previous month to 293.29 billion rupees. This sustained inflow trend, particularly into small- and mid-cap funds which saw record buying, indicates a long-term investment perspective from retail investors who are looking past near-term market fluctuations. Hiren Dasani, chief investment officer for emerging markets at WhiteOak Capital, noted that earnings growth is a key driver for company returns. Despite global geopolitical tensions and potential U.S. interest rate hikes, domestic factors such as growth data and central bank measures to support the rupee have contributed to positive fund flows. Equity funds have now recorded net inflows for 66 consecutive months. In contrast, large-cap funds experienced outflows for the second consecutive month, while inflows into gold ETFs saw a significant jump.