Despite the decline, this marks the 54th consecutive month of net inflows into the equity segment

Inflow in equity mutual funds dropped by 22 per cent to Rs 33,430 crore in August, largely due to a sharp fall in new fund offers (NFOs) and global macroeconomic uncertainties.

Despite the decline, this marks the 54th consecutive month of net inflows into the equity segment. 

Systematic Investment Plan (SIP) inflows also moderated slightly to Rs 28,265 crore during the month, compared with Rs 28,464 crore in July, data released by the Association of Mutual Funds in India (AMFI) showed on Wednesday.

Going by the data, equity-oriented mutual funds saw inflows of Rs 33,430 crore in August, down from Rs 42,702 crore in July.

Experts attributed the decline to a combination of lower NFO activity and global macroeconomic pressures, with tariff-related developments fuelling market volatility and prompting investors to take a more cautious approach.

"The lower impact of new flow viz previous month roughly Rs 9,000 crore is to the extent of NFOs which were higher in July than August. Rest the flow momentum is steady and healthy," Akhil Chaturvedi, Chief Business Officer of Motilal Oswal Asset Management Company, said.

Echoing this view, Suranjana Borthakhur, Head of Distribution & Strategic Alliances at Mirae Asset Investment Managers (India), pointed out that a large part of last month's surge was driven by sectoral categories, with nearly Rs 7,000 crore coming from NFOs alone.

Himanshu Srivastava, Principal, Manager Research at Morningstar Investment Research India, said that global uncertainties, including foreign investor outflows, caution over valuations, and the intensified tariff war between India and the US, may also have contributed to the softer pace in August. Among categories, Flexi Cap Funds remained the biggest gainer, setting a fresh record with inflows of Rs 7,679 crore in August, surpassing July's high of Rs 7,654 crore. Mid Cap Funds and Small Cap Funds continued to attract strong investor interest.