Mutual funds in India saw net inflows of ₹2.39 lakh crore in October, contrasting with a ₹71,114 crore outflow the previous month.
Equity funds recorded inflows of ₹41,887 crore, up 21.69% month-on-month (MoM) from ₹34,419 crore in September.
Total assets under management (AUM) increased to ₹68.5 lakh crore, compared to ₹67.1 lakh crore last month.
However, equity AUM decreased to ₹29.9 lakh crore from ₹31.1 lakh crore MoM.
Open-ended equity mutual funds continued their positive streak for the 44th consecutive month, despite a weak market performance in October when both Sensex and Nifty declined by 5.77% and 6.22%, respectively. Demand for small-cap, mid-cap, and large-cap funds remained strong, with steady inflows across these categories.
In the debt segment, fixed-income funds saw significant inflows, totaling ₹1,57,402.3 crore, while overall open-ended mutual funds witnessed net outflows amounting to ₹2,39,906.8 crore for October, as reported by the Association of Mutual Funds of India (AMFI) on November 11.
Actively Managed Equity Funds
Large-cap funds saw an inflow of Rs 3,452 crore in October, compared to Rs 1,769 crore in September. Mid-cap funds received Rs 4,683 crore, up from Rs 3,130 crore the previous month. Small-cap funds had a net inflow of Rs 3,772 crore, an increase from Rs 3,071 crore in September.
Thematic and sector-specific funds experienced slightly lower inflows, totaling Rs 12,278 crore in October. This category, with the largest assets under management, had received Rs 13,254 crore in inflows in September.
Debt Funds
Debt funds received an inflow of Rs 1.57 lakh crore in October, reversing the Rs 1.14 lakh crore outflow seen previously. Overnight funds attracted Rs 25,784 crore, while liquid funds saw inflows of Rs 83,863 crore in October.
Hybrid and Passive Funds
Hybrid funds recorded inflows of Rs 16,863 crore, up from Rs 4,901 crore in September. The largest inflows in this category were in arbitrage funds, while multi-asset allocation funds led inflows the previous month.
Passive funds saw inflows of Rs 23,428 crore in October, compared to Rs 3,254 crore in September. The “Other ETFs” category recorded the most inflows, with Rs 13,441 crore.
New Fund Offerings (NFOs)
New fund offers contributed Rs 6,078 crore in October. The index funds category had the most NFO launches. NFOs contributed over 50% of the industry inflows in September, bringing in Rs 14,575 crore, with sectoral and thematic NFOs alone accounting for Rs 3,517 crore.
SIP Investments Surge to Record Rs 25,322 Crore in October 2024 Despite Market Decline
Investments in mutual funds through monthly systematic investment plans (SIPs) crossed Rs 25,000 crore for the first time in October 2024. According to the Association of Mutual Funds of India (AMFI), the SIP total reached Rs 25,322 crore in October, up from Rs 24,509 crore in September. The number of SIP accounts also hit a record high of 10.12 crore in October, compared to 9.87 crore in September. In October, 24.19 lakh new SIP accounts were added, showing that retail investors are still confident in the Indian market despite a weak performance by stocks. The Sensex and Nifty both fell by around 5.8% and 6.2% in October.
The addition of new SIP (Systematic Investment Plan) accounts continued to slow down for the third month in a row in October, and the SIP stoppage ratio remained above 60% for the second month in a row, reaching a five-month high. This trend occurred even though October saw a record high inflow of Rs 41,887 crore into equity funds, with positive flows into open-ended equity funds for the 44th month in a row.
According to data from the Association of Mutual Funds in India (AMFI), investments through SIPs reached an all-time high of Rs 25,322 crore in October, up from Rs 24,509 crore in September.
Experts don’t see the slowdown in new SIP additions or the high stoppage ratio as a major issue. They believe some investors may be waiting for the market to improve before starting new SIPs, while others might prefer lump sum investments when the market is low, rather than starting new SIPs.
Despite the slowdown in new SIP registrations, the average SIP size has increased to its highest level in months. Over 10 crore outstanding SIP accounts invested an average of Rs 2,499 each in October, the highest since May 2020, up from Rs 2,483 in September and Rs 2,449 in August.
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