MF investors buy small, midcaps in Oct; SIP flows near 17K cr
₹16,927.86 crore in October, up 5.5% from the previous month, data from the Association of Mutual Funds in India (AMFI) showed. Small-cap funds witnessed net inflows of ₹4,495.13 crore in October, up 67.8% from a month ago and mid-cap funds attracted net investment of ₹2,408.9 crore, up from ₹2,000.88 crore in September. At ₹723.81 crore large cap funds witnessed inflows for the first time since April.
“Small-sized companies have been reflecting faster growth and fundamental strength, borne out by Q2 returns," said Chandraprakash Padiyar, senior fund manager, Tata Mutual Fund. “While we might not see the 30-35% compounded annual returns of the past three years, reasonable returns can still be expected from these stocks. From a valuation perspective, we could see large caps outperforming small and midcaps in the next 6-18 months." The Nifty Small Cap 250 index corrected by 1.69% against the Nifty Midcap 150’s 3.79% fall and the Nifty 50’s 2.85% correction for October.
On the SIP performance, N.S. Venkatesh, CEO, AMFI said, “SIP numbers show consistent month-on-month gro-wth, underlining the strength of SIPs. Looking ahead, we are confident of continued inflows into small and mid-cap funds, given the untapped potential in these segments.
High SIP account openings indicate a growing, committed investor base," he added. The mutual funds industry saw net inflows of ₹80,586 crore in October, up from ₹66,191.6 crore net outflow in September. This was driven by a rise in inflows through SIPs and long-term debt funds.
Equity schemes also witnessed higher inflows, with ₹19,957 crore, up from 44% last month. “From the equity-oriented schemes, the trends of previous months continue to prevail. Mid and small caps continued to be the
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