After a few strong months of buying, investors took a breather in October. Data from the Association of Mutual Funds in India (AMFI) showed that equity mutual fund inflows fell 19 per cent month-on-month to Rs 24,671 crore, compared with Rs 30,405 crore in September.
Even with the slower pace, the broader industry held firm. Total assets under management (AUM) across mutual funds rose to a fresh record of Rs 79.87 lakh crore, up from Rs 75.61 lakh crore in the previous month.
Flows ease across equity categories
Investor enthusiasm cooled somewhat in large and mid-cap segments. Large-cap funds collected Rs 972 crore, less than half of September’s Rs 2,319 crore. Mid-cap and small-cap funds also saw inflows moderate to Rs 3,807 crore and Rs 3,476 crore, respectively.
Sector-focused schemes bucked the trend, managing a mild uptick in inflows at Rs 1,366 crore, compared with Rs 1,221 crore earlier. However, equity-linked savings schemes (ELSS) slipped deeper into outflow territory, posting redemptions of Rs 665 crore.
Market watchers said investors appear to be turning selective after the sharp rally in broader markets over the last few months.
Debt outflows rise; hybrid schemes steady
The debt segment recorded heavy outflows, largely due to routine quarter-end withdrawals by institutions and corporates. Liquid funds saw redemptions of Rs 89,375 crore, compared with Rs 66,042 crore in September.
Among other categories, credit risk funds continued to witness outflows of Rs 84 crore, while corporate bond funds reversed trend with Rs 5,122 crore in inflows.
In contrast, hybrid funds — which invest in a mix of equities and debt — remained in favour, attracting Rs 14,156 crore, up from Rs 9,397 crore in the prior month.
Passive, gold funds maintain steady pace
Passive investing stayed broadly stable. Exchange-traded funds (ETFs) brought in Rs 6,182 crore, while Gold ETFs drew Rs 7,743 crore, both slightly lower than in September.
New fund offerings (NFOs) gathered pace, mobilising Rs 6,062 crore in October against Rs 1,959 crore earlier, helped by new thematic and hybrid fund launches.