Equity MF Inflows Down 22% in Aug on NFO Slump

SIP inflows fell for the first time in four months as accounts declined

- ABHISHEK KUMAR

Net inflows into equity mutual fund (MF) schemes moderated to ₹33,430 crore in August, a 22 percent drop from the record ₹42,702 crore in July, primarily due to lower collections from new fund offerings (NFOs).

Active equity NFOs brought in ₹2,056 crore in August, compared with nearly ₹9,000 crore in July.

"The decline in flows compared to the previous month—roughly ₹9,000 crore—is largely due to the drop in NFO collections. For the rest, the flow momentum is steady and healthy," said Akhil Chaturvedi, executive director and chief business officer, Motilal Oswal Asset Management Company.

Inflows were also impacted by a decline in systematic investment plan (SIP) investments. Gross SIP inflows at ₹28,265 crore were down 0.7 percent month-on-month (M-o-M), after a record ₹28,464 crore in July.