Driven by strong investments in thematic funds, equity mutual funds saw a record inflow of Rs 41,887 crore in October, representing a spike of over 21% on a month-over-month (MoM) basis.
According to data released by the Association of Mutual Funds in India (AMFI) on November 11, this also represents the 44th consecutive month of net inflow into equity-oriented funds, underscoring the growing popularity of mutual funds among investors.
The figures for October are truly outstanding, mialny given the recent sharp market fall. Although robust market performance earlier this year supported equity inflows, October saw a sharp reverse.
For the first time, the monthly mutual fund SIP surpassed Rs 25,000 crore in October, reaching Rs 25,323 crore as opposed to Rs 24,509 crore in September.
"Similar to what we last witnessed in March 2020, the 5–6% decline in the Sensex and Nifty was among the most severe in recent memory. With inflows surpassing Rs 40,000 crore, retail investors have been remarkably resilient in spite of this," Santosh Joseph, co-founder and CEO of Germinate Investor Services, told PTI.
After an outflow of Rs 71,114 crore in September, the mutual fund industry saw an overall inflow of Rs 2.4 lakh crore in the month under review. Investments of Rs 1.57 lakh crore into debt programs were the cause of the massive inflow.
From Rs 67 lakh crore in September to Rs 67.25 lakh crore last month, the industry's net assets under management increased. According to the report, equity-oriented schemes saw an inflow of Rs 41,887 crore in October, while September saw an inflow of Rs 34,419 crore.
Before this in June, equity schemes received an inflow of Rs 40,608 crore.
The sectoral theme within the equity schemes drew the most net inflows of Rs 12,279 crore during the reviewed month. Nevertheless, the segment's flow was lower than the Rs 13,255 crore recorded in September.
Following a large outflow of Rs 72,666 crore in September, liquid mutual funds saw record inflows of Rs 83,863.3 crore. Outflows from credit risk mutual funds decreased to Rs 357.8 crore from Rs 484 crore the previous month.
At Rs 4,644.4 crore, corporate bond mutual funds experienced a consistent inflow, up from Rs 5,039 crore the month before. Dividend yield mutual funds had a steep drop in flows, totaling Rs 532.8 crore, compared to Rs 1,530 crore the month before.
Equity Linked Savings Schemes (ELSS), which are in the tax-saving sector, experienced net inflows of Rs 362 crore last month, compared to an outflow of Rs 349 crore.
