Equity fund redemptions jump 38% despite strong SIP inflows

Imagine you put money into a big basket of company shares called a mutual fund.

Many people in India do this every month through something called a SIP, which is like a piggy bank where you add a little money regularly.

In July, a lot of people took money out of their equity funds, which are funds that invest in company shares.

The amount taken out was about ₹44,824 crore, which is almost 40% more than the same time last year.

But this doesn't mean people are scared of shares.

Many of them are moving their money into smaller companies' funds, which are riskier but can grow faster.

Small-cap funds got ₹7,768 crore and mid-cap funds got ₹6,192 crore in new money.

Big company funds actually lost ₹1,322 crore.

Experts say investors are booking profits, meaning they sell when prices are high and buy other things.

They are also keeping their monthly SIP payments going, which shows they still believe in investing for the long run.