Now Reading: Four equity fund categories log outflows in July despite gains
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Four equity fund categories log outflows in July despite gains
Four equity mutual fund categories, large-cap, dividend yield, value, and ELSS, recorded net outflows in July 2026, even as most delivered positive returns, according to AMFI data. Large-cap funds saw outflows of…
The Story in Brief
Four equity mutual fund categories, large-cap, dividend yield, value, and ELSS, recorded net outflows in July 2026, even as most delivered positive returns, according to AMFI data. Large-cap funds saw outflows of Rs 1,322 crore after inflows in June, while value and contra funds logged Rs 145 crore in outflows. Dividend yield funds continued withdrawals at Rs 169 crore, and ELSS outflows stood at Rs 959 crore. Jasmeet Singh of Anand Rathi Wealth attributed the trend to investors shifting towards mid- and small-cap funds, which attracted large inflows, rather than poor performance. Aditya Agarwal of Wealthy.in noted that ELSS outflows were partly due to post-tax-season redemptions and the growing preference for the new tax regime. Experts caution against reading too much into one month's data and advise diversification.
The Indian Opinion
The July outflows do not signal a crisis for large-cap funds, but they highlight a recurring recency bias. Investors are chasing mid- and small-cap returns, ignoring the role of large-caps in portfolio stability. The real test will come when mid-caps correct, will investors then rush back to large-caps, or repeat the cycle? That question will separate disciplined investors from trend followers.
Source: livemint.com
This story was synthesised by AI from the source linked above.
