Mumbai, Aug 10 (IANS): Profit booking, along with caution on the part of investors, led to a net outflow from equity mutual fund schemes in July on a sequential basis.

According to the data from the Association of Mutual Funds in India, the net outflows stood at 2,480.35 crore in July.

In June, the net inflows stood at Rs 240.55 crore from Rs 5,256.52 crore in May.

The month-on-month slump comes on the back of likely profit booking and caution.

Even the monthly SIP contribution was down to Rs 7,830.66 crore from Rs 7,927.11 crore in June and Rs 8,123.03 crore in May.

However, total assets under management of the mutual funds rose to Rs 27.11 lakh crore from Rs 25.48 lakh crore in June 2020 and Rs 24.54 lakh crore in May.

On the July 2020 Mutual Fund Monthly data, N.S. Venkatesh, Chief Executive, AMFI, said: "Investor confidence in the markets continues to be robust, going by the rising net fresh SIP registrations and overall Mutual Fund AUMs increasing since the advent of the pandemic."

"Debt Mutual Fund schemes are an attractive proposition, with benign interest rate environment leading to better yields, as also superior risk management by the Debt Fund Managers."

"The Outlook on the Mutual Fund flows for the rest of 2020-21 would continue to be encouraging, with rising digital-driven inflows, accommodative stance on interest rates by the RBI, improving macro-economic environment and pick-up in economic activity on the back of easing of lockdown," Venkatesh added.