Equity Mutual Fund Inflows Drop 33.4% In October

Net investments into equity and equity-linked schemes fell 33.4% over September to Rs 9,390.4 crore in October.

<div class="paragraphs"><p>Indian rupee currency notes and coins. (Source: Rupixen/Unsplash)</p></div>
Indian rupee currency notes and coins. (Source: Rupixen/Unsplash)

Inflows into equity mutual funds declined in October after rising in September.

Net investment into equity and equity-linked schemes fell 33.4% from the previous month to Rs 9,390.4 crore in October, as per data released by the Association of Mutual Funds in India.

The Indian equity benchmarks gained in October. The S&P BSE Sensex and the NSE Nifty 50 had rallied 5.78% and 5.37%, respectively.

SIP Contribution

Monthly contributions into systematic investment plans rose for the third straight month to Rs 13,040.6 crore in October.

The SIP accounts grew by 9.52 lakh to 5.93 crore in October, from 5.83 crore in September.

“Markets continue to react to the global factors and domestic rate hikes. However, mutual fund investors have shown resilience and continue to invest in SIPs, with consistent contributions month-on-month," said NS Venkatesh, chief executive of AMFI, in a statement.

There is growth in overall equity AUM and folios too, he said.

Category-Wise Trends

All segments witnessed inflows in October, with small-cap funds witnessing the most investments while large-cap funds saw the least.

AMFI has been posting granular data since April 2019.

Debt Funds

Liquid funds saw inflows of Rs 19,084.6 crore in October, after witnessing outflows in September.

These funds are used by companies to store short-term cash.

Credit risk funds witnessed outflows for the 11th straight month in October.

Net flows

The industry posted a total net inflow of Rs 14,046.9 crore versus an outflow of Rs 41,404.3 crore in September.

Money market funds saw outflows worth Rs 1,996.3 crore in October, compared with outflows worth Rs 11,232.1 crore in September.

The average assets under management stood at Rs 39.5 lakh crore in October versus Rs 39.9 lakh crore in September.

Net AUM rose to Rs 39.5 lakh crore from Rs 38.4 lakh crore in the previous month.