In October, equity mutual funds in India witnessed robust inflows, with a total of Rs 19,957 crore, up from Rs 14,091 crore in September. This marks the third-highest monthly inflow into equity funds in the year 2023, according to Deepak Jasani, Head of Retail Research at HDFC Securities.
Contributing to this influx, small- and mid-cap categories saw substantial contributions of about Rs 7,000 crore, demonstrating resilience despite restrictions on lump-sum investments and new Systematic Investment Plans (SIPs) imposed by certain funds. The SIP contribution to the mutual funds industry in October reached Rs 16,928 crore, compared to Rs 16,420.06 crore in September.
Despite a risk-off sentiment in the equity markets, with the index falling below 19,000 levels, equity mutual funds exhibited resilience, experiencing a significant net inflow of Rs 19,957 crores compared to Rs 14,091 crores in September, as highlighted by Akhil Chaturvedi, Chief Business Officer at Motilal Oswal AMC.
Notably, major flows were observed in small-cap funds (Rs 4,495 crores) and thematic/sectoral funds (Rs 3,895 crores). Hybrid funds, particularly arbitrage funds and multi-asset funds, continued to attract healthy net inflows, reflecting a market sentiment focused on risk-off strategies with an emphasis on capital protection. The structural strength of domestic flows, with SIPs playing a larger role in inflows compared to one-time investments, underscores the market's resilience.
(With Agency Inputs)
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