According to data published on November 11 by the Association of Mutual Funds of India (AMFI), the trade association for mutual funds, open-ended equities mutual fund inflows increased 21.69 percent month-over-month (MoM) to Rs 41,887 crore in October across the equity fund category. For the 44th consecutive month, inflows into open-ended equities funds were in the positive range.
Additionally, according to AMFI data, mutual fund investments made through monthly systematic investment plans (SIPs) reached an all-time high of Rs 25,322 crore in October, up from Rs 24,509 crore in September.
The increase in stock fund inflows coincided with the equities markets’ poor performance the previous month. In October, the Nifty and the Sensex fell 6.22% and 5.77%, respectively. Due to solid inflows throughout the month, demand for small, mid, and large-cap funds remained high.
Inflows into large-cap funds in the equity fund category almost doubled to Rs 3,452 crore. Additionally, net investments in small-cap funds increased by 23% to Rs 3,772 crore, while net investments in mid-cap funds surged by 50% to Rs 4,683 crore.
Despite a 7% decline, inflows into sectoral/thematic funds remained robust in October at Rs 12,279 crore. During the month, four new fund offerings in the Sectoral/Thematic category brought in Rs 3,517 crore.
Debt mutual funds received inflows totaling Rs 1,57,402.30 crore in the fixed-income sector. The category with the most inflows during the month was the short-duration liquid fund, which received Rs 83,863 crore. With net investments of Rs 25,303 crore and Rs 25,303 crore, respectively, Overnight Funds and Money Market Funds came next.
However, there were minor withdrawals from the Medium Duration Fund and Credit Risk Fund categories.
Additionally, aggressive demand in the Arbitrage Fund, Dynamic Asset Allocation/Balanced Advantage Fund, and Multi-Asset Allocation Fund categories drove net investments of Rs 16,863 in hybrid funds during the month.
In the other scheme category, there were inflows of Rs 7,931 crore into index funds and net investments of Rs 1,962 crore in gold exchange-traded funds (ETFs). In October, there were net withdrawals from open-ended mutual funds totaling Rs 2,39,906.79 crore.
