Mutual fund flows stay resilient in choppy October
Retail investors used the sharp dips in the market in October to add to both their lump sum equity mutual fund schemes and systemic investment plans (SIP), taking both to record highs.
Investors bought equity funds worth ₹41,887 crore in October, the highest ever in a month, compared to ₹34,419 crore in September. SIP purchases amounted to ₹25,323 crore, up from ₹24,509 crore in the previous month. Debt funds saw inflows of ₹1,57,402 crore, largely from overnight and liquid funds. Strong flows and an increase in stock market valuation took the total average assets under management of the industry to ₹68.5 lakh crore, against ₹68 lakh crore in the previous month.
«We have seen heightened volatility in markets with FIIs (foreign institutional investors) selling due to major global events, including the US elections. The healthy net flows is a testimonial to the resilience amongst domestic investors to continue investing in equities despite market volatility,» said Akhil Chaturvedi, executive director, Motilal Oswal Mutual Fund.
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Investors continued to put money into sectoral and thematic funds, with these funds attracting ₹12,2278 crore in October.
Within equities, all categories saw robust flows from investors. Flexicap funds got the highest inflows of ₹5,181 crore, followed by large- and mid-cap funds, which attracted ₹4,857 crore. Large-cap funds attracted ₹3,452 crore, while multi-cap funds, which invest in
