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Inflows into equity mutual fund schemes dipped 33 per cent last month to ₹9,390 crore against ₹14,100 crore logged in September. Investors continued to book profit with the market rallying on the back of India growth prospects despite a global upheaval.
Fresh equity investment by investors was lower, even though all schemes, except for dividend yield, registered a positive flow. Thematic funds attracted the highest inflow of ₹2,686 crore on the back of ₹2,609 crore collected through two new fund offers by ICICI Pru Mutual Fund and IDFC MF, according to Association of Mutual Funds in India (AMFI) data released on Thursday.
Small- and mid-cap funds also attracted highest investment of ₹1,582 crore (₹1,825 crore) and ₹1,385 crore (₹2,151 crore) last month, while large-cap funds received an inflow of ₹1,190 crore (₹274 crore).
Positive investor sentiment
Shweta Rajani, Head (Mutual Funds), Anand Rathi Wealth, said after seeing a surge in net inflows in September, there was a slowdown last month. However, the last few months of net flow data clearly show the maturity of investors, as there has been a continuous net buying of equity irrespective of the short-term turbulence in the market, she added.
Akhil Chaturvedi, Chief Business Officer, Motilal Oswal AMC, said the trend in SIP contribution and folios are positive, reflecting the faith of the investors in the Indian economy and markets. However, he said the 12 per cent dip in the number of new SIPs registered last month compared to the average of the last two months needs to be watched for gauging retail investor sentiment.
Outflow from hybrid schemes continued at ₹2,819 crore last month against an outflow of ₹2,688 crore registered in September. About 31 new fund offers received investment of ₹5,439 crore (₹8,374 crore) with 21 new index funds attracting ₹1,750 crore.
SIP contribution touched ₹13,041 crore compared to ₹12,976 crore in September. SIP asset increased to ₹6.65-lakh crore (₹6.35-lakh crore).
NS Venkatesh, Chief Executive, AMFI, said investors have shown resilience and continued with their SIPs even as markets reacted to the global factors and domestic rate hikes.
Almost all the debt schemes came under redemption pressure with overall net outflow touching ₹2,818 crore last month against outflow of ₹65,372 crore in September.
Overall asset under management of mutual fund industry was up at ₹39.50-lakh crore against ₹38.42-lakh crore in September.
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