Equity fund inflows hit four-month high in August

MUMBAI: Inflows into Indian equity mutual funds rose to Rs 29,329 crore in August, the highest level in four months, driven by strong demand for smallcap and midcap schemes, according to monthly data released by the Association of Mutual Funds in India on Thursday. The figure represents an increase of roughly 18 to 19 percent from July's Rs 24,697 crore, though some reports of the same release put the August total at Rs 29,697 crore, a discrepancy that could not be reconciled. Systematic investment plans, the preferred route for retail investors, hit a record Rs 32,297 crore in August, with contributing SIP accounts reaching an all-time high of 10.2 crore, up from 9.9 crore in July. However, one analysis citing the Centre for Monitoring Indian Economy noted that SIP growth plateaued for a third consecutive month, rising only about 1.5 percent month on month, suggesting a slowdown in incremental contributions even as headline totals set records. Among equity categories, smallcap funds led with net inflows of Rs 7,973 crore, followed by midcap funds at Rs 6,989 crore and flexicap funds at Rs 5,059 crore.