Gold ETFs swing from outflow to Rs 3,443 crore inflow as equity investors diversify

Gold ETFs recorded a net inflow of Rs 3,443 crore in June, reversing a net outflow of Rs 725 crore the previous month, according to data released by Amfi, the fund industry trade body. The swing came in a month that also saw strong equity mutual fund inflows despite stock market volatility.

Net inflows into equity mutual funds jumped 26% over May to almost Rs 29,000 crore in June, with investors favouring mid- and small-cap funds over other scheme types. Mid-cap funds recorded a net inflow of Rs 6,090 crore, while small-cap and flexi cap funds saw net inflows of Rs 5,602 crore and Rs 5,231 crore, respectively.

Gross flows through the SIP route also jumped to nearly Rs 31,800 crore, a three-month high, and June marked the 64th consecutive month of positive net flows into equity funds, a streak dating back to March 2021.

Venkat Chalasani, chief executive of Amfi, said the June data signals growing investor confidence and increasing adoption of disciplined, long-term investing through the mutual fund route. Viraj Gandhi, CEO of Samco Mutual Fund, said investors were rotating into mid- and small-cap conviction bets rather than exiting equities during the month’s market dip.

Retail assets under management, covering equity, hybrid and solution-oriented schemes, rose to Rs 49.4 lakh crore in June from Rs 47.9 lakh crore in May, while the fund industry’s overall net assets under management stood at Rs 82.2 lakh crore, up marginally from Rs 81.6 lakh crore in May.