Equity mutual funds surge 42% in October
economictimes.indiatimes.commutual funds in October jumped 42% over the previous month led by continued investor appetite for small-cap schemes. This marks the 32nd straight month of inflows into equity schemes in the wake of the record-breaking stock market rally.
Debt mutual funds too witnessed inflows of ₹43,634 crore after the outflows in September, as corporate treasuries came back to liquid funds with October being the first month of the third quarter of the financial year.
The average assets under management inched up to ₹47.52 lakh crore from ₹47.50 lakh crore in September.
Equity mutual funds garnered ₹19,957 crore in October against ₹14,091 crore in September, according to data from Association of Mutual Funds of India (AMFI). Investments through Systematic Investment Plans (SIPs) also reached a new high of ₹16,928 crore against ₹16,042 crore in September.
Within equity schemes, small- cap funds got the highest flows, followed by thematic funds and multi-cap funds.
Small-cap funds received ₹4,495 crore in October compared to ₹2,678 crore in September aided by new fund offers (NFOs) from Baroda BNP Small Cap Fund and Quantum Small Cap Fund.
«Both midcap and smallcap indexes have seen a sharp rally over the last six months and one year. Consequently, investors have also flocked to this category with ever increasing flows,» said Melvyn Santarita, analyst — manager research, Morningstar Investment Adviser.
Mid-cap funds saw flows of ₹2,409 crore.
Multi-cap funds, which invest in a mix of large-cap, mid-cap and small-cap stocks, saw inflows of ₹2,911 crore. Flexicaps saw inflows of ₹2,169 crore, while large cap funds saw inflows of ₹724 crore.
In the debt space, liquid funds saw inflows of ₹33,000 crore, while some family offices put
