Inflow in equity MFs jumps 42% to nearly Rs 20,000 cr in October

New Delhi, November 9

Driven by investors’ interest in small-cap funds, inflow in equity mutual funds surged 42% month-on-month to nearly Rs 20,000 crore in October despite the risk-off sentiment in the stock markets.

This was way higher than Rs 14,091 crore inflow seen in the category in September. Before this, the inflow was at Rs 20,245 crore in August, according to the data from the Association of Mutual Funds in India (AMFI) released on Thursday. Inflow through SIPs (Systematic Investment Plans) hit a fresh all-time high of Rs 16,928 crore in October, surpassing the previous high of Rs 16,042 crore in September.

SIPs at all-time high

• The total inflow in equity MFs in October was way higher than Rs 14,091 crore seen in September
• Before this, the inflow was at Rs 20,245 crore in August
• Inflow through SIPs hit a fresh all-time high of Rs 16,928 crore in October, surpassing the previous high of Rs 16,042 crore in September

“SIP numbers show consistent month-on-month growth, underlining the strength of systematic investment plans. High SIP account openings indicate a growing, committed investor base,” NS Venkatesh, Chief Executive at Amfi, said.

Going by the data, equity mutual funds witnessed a net inflow of Rs 19,957 crore in October, making it the 32nd consecutive month of net infusion.

All the categories experienced inflow in equity segments. The equity category was also aided by four new fund launches in October which garnered Rs 2,996 crore.

“The month of October, the equity markets continued to experience a risk-off sentiment, with the Index falling below 19,000 levels. Despite this fall, equity mutual funds continued to exhibit resilience, recording a significant net inflow of Rs 19,957 crores v/s Rs 14,091 crore observed in September,” Akhil Chaturvedi, Chief Business Officer, Motilal Oswal Asset Management Company, said.

Among the equity asset class, the small cap category attracted the highest inflows to the tune of Rs 4,495 crores during the month. This was followed by Rs 3,896 crore in thematic funds.