New Delhi, Aug. 11 -- Net inflows into equity mutual funds surged sharply in July, driven by a gush of money into new fund offers (NFOs) and a market correction, which prompted investors to step up allocations.

According to data from the Association of Mutual Funds of India (Amfi), net equity inflows hit a record high of Rs.42,672 crore in July, up 81% month-on-month.

Of this, equity NFOs accounted for about Rs.9,000 crore and continuing SIPs contributed roughly Rs.25,000 crore, while fresh inflows into existing schemes were around Rs.8000 crore, said Viraj Gandhi, chief executive officer (CEO) of SAMCO Mutual Fund.

He said nearly Rs.7,400 crore of the Rs.9,000 crore inflows into NFOs went into thematic funds. "Large Asset Management C...