Equity MF Inflows Fall 19% in October Amid Market Uncertainty
Equity MF Inflows Fall 19% in October Amid Market Uncertainty
Equity mutual funds dip as investors pause lump-sum bets; debt funds see hefty inflows, signaling a shift to safety amid volatility.
Mumbai — Equity mutual fund inflows declined 19% to ₹24,690 crore in October from ₹30,422 crore in September, as investors held back on fresh lump-sum investments amid uncertainty over the stock market's direction. Inflows through SIPs rose marginally to ₹29,530 crore from ₹29,361 crore, while debt mutual funds attracted ₹1.60 lakh crore, led by liquid and overnight funds. The industry’s net assets under management rose to ₹79.62 lakh crore from ₹75.61 lakh crore in the previous month, reflecting the impact of mark-to-market gains.
Flexicap funds received the highest equity inflows at ₹8,928 crore, accounting for about one-third of total equity flows, higher than September’s ₹7,029 crore. Multicap funds garnered ₹2,500 crore, down from ₹3,560 crore the prior month. Midcap schemes attracted ₹3,807 crore, lower than ₹5,085 crore in September, while small-cap schemes saw ₹3,476 crore in October (₹4,363 crore in September). Allocation to sectoral funds rose modestly to ₹1,366 crore from ₹221 crore.
Market commentators note that October, the first month of the quarter, typically sees increased debt fund inflows as institutions reposition portfolios and seek liquidity amidst range-bound markets. Liquid funds recorded the highest collections at ₹89,375 crore, followed by overnight schemes at ₹24,050 crore. Overall, October’s patterns point to a cautious stance among investors while still pursuing diversified exposure through debt and selective equity categories.
Cover image source: MFs in October: Equity mutual fund inflows drop 19% m-o-m to Rs 24,691 crore; total AUM nears Rs 80 lakh crore 🔗
