World happenings:

July 2024 was a month with a mixed bag of news which reflected in the market swings. Budget was announced mid-month with no substantial impacts which was a relief for some and a let down for others. Monsoon wreaked havoc in Kerala and Maharashtra while there were droughts in other parts. In the US, elections are campaigning is on in a big way and July brought in a major upset with Joe Biden’s withdrawal from the race and the nomination of Kamala Harris. This news resulting in the Dow Jones dipping and the world markets followed. But soon Ms. Harris proved to be worthy opponent to Donald Trump and the markets corrected themselves. The ongoing Israel-Hamas daily skirmishes are not letting the Middle East stabilise; with new entrants like Iran or Lebanon threatening to join in.

Surprisingly, this month the net result of all the upheavals was that the Sensex was at a high of 81,741 points. Gold was at a low of around Rs.6,700 per gram, falling by almost Rs.300 per gram. Generally in times of uncertainty the reverse is observed; gold is seen to gain popularity as it holds value under all circumstances.

Open-ended equity mutual fund inflows fell 8.61 percent to Rs.37,113.39 crore during July due to a fall in investments in large-cap and mid-cap funds, according to the data released by the Association of Mutual Funds of India (AMFI). Comparatively, in June the inflows into equity mutual funds had increased to Rs.40,608.19 crore, a new high

Inflows in the SIP section hit a fresh record high of Rs.23,332 crore during July against Rs.21,262 crore in June. AMFI sources said, “The mutual fund industry has demonstrated positive growth with retail investors consistently embracing mutual funds as a reliable investment avenue. It's evident that mutual funds have become an integral part of retail investors' financial strategies.”

Sectoral or thematic funds slipped from Rs.22,352 crore in June to Rs.18,386 crore in July. A few New Fund Offers (NFOs) were launched under sectoral funds in July, and as everyone knows, it takes a while for the NFOs to find takers. While Multicap funds were on the rise; large, mid and small-cap funds were less popular this month.

Debt mutual funds saw net inflows of Rs.1,19,587.60 crore during the month. The short-term liquid funds category saw net inflows of Rs.70,060.88 crore, while money market funds witnessed fresh investments of Rs.28,738.03 crore.

The Indian market showed resilience in spite of global and domestic turbulence this month. Mutual fund inflows reflected mixed investor sentiment, with a decline in equity mutual funds but a record high in SIP contributions. Debt funds, particularly short-term liquid and money market funds, saw substantial inflows, showcasing a shift towards safer investments amidst uncertainty. The average Indian investor is now matured and doesn’t allow politics to cloud their investing decisions.

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