Now Reading: Four equity fund categories see outflows in July even as returns rise
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Four equity fund categories see outflows in July even as returns rise
Four equity fund categories see outflows in July even as returns rise
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 the steepest…
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 the steepest withdrawal of Rs 1,321 crore, followed by ELSS at Rs 959 crore, dividend yield at Rs 169 crore, and value/contra at Rs 144 crore.
Experts attribute the shift to investors moving money into mid- and small-cap funds after a market recovery, with small-cap funds attracting a record Rs 7,767 crore and mid-caps Rs 6,192 crore. Overall equity fund inflows fell 15 per cent month-on-month to Rs 24,697 crore. Separately, debt funds saw a sharp revival, pulling in Rs 1.87 lakh crore after two months of outflows.
The Indian Opinion
The 'momentum chasers vs value investors' narrative is getting a fresh workout. Retail money flooding into small and mid-caps after a correction is recency bias in action, as experts quoted by livemint.com caution. But calling every move from large caps a mistake ignores that the new tax regime has genuinely dimmed ELSS appeal, and a 55:25:20 allocation across large, mid, small is not panic. The real test will come when these record small-cap inflows face their first 5 per cent drawdown, will the money stay or sprint for the exit? That metric will tell us if this is conviction or FOMO.
Sources (2): livemint.com, timesnownews.com
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
