Equity mutual fund investment drops 14% to ₹33,000 crore in October

According to a Business Standard report, data released by the Association of Mutual Funds in India (AMFI) on Wednesday shows that investment in equity mutual funds fell by nearly 14 percent to ₹32,994 crore in October. Earlier in September, this figure stood at an inflow of ₹38,306 crore. However, this is the 60th consecutive month of net inflow in the equity category.

AMFI stated that the total Assets Under Management (AUM) under equity schemes stood at ₹37.14 lakh crore as of October 31. The main reason for the decline in these figures was market correction. Earlier in September, despite market volatility, equity inflows had seen a jump of more than 31 percent.

A marginal decline was also recorded in October in the amount coming through Systematic Investment Plans (SIP), which are favored by retail investors. Compared to ₹32,490 crore in September, an investment of ₹32,160 crore was made through SIPs in October. Along with this, the number of accounts contributing to SIPs also decreased from 10.06 crore in September to 10 crore in October.

AMFI Chief Executive Venkat Chalasani stated that market volatility may have impacted investment, but factors such as the re-evaluation of Indian equities by foreign brokerages and falling oil prices indicate good signs. He added that from a future perspective, strong corporate earnings and high credit growth by banks are also positive, showing the strength of underlying economic activity.

Responding to a question regarding the future status of SIP flows, Chalasani said that despite volatility, investments in October saw a 10 percent increase compared to investments of over ₹29,000 crore made during the same period last year. Even though Foreign Institutional Investors (FIIs) net sold Indian equities worth ₹34,843 crore during October, most investors remained committed to their SIPs due to confidence in the long-term prospects of the Indian economy.

During October, both gold and silver exchange-traded funds (ETFs) received investments of over ₹3,000 crore. According to AMFI data, a total of 28 new fund offers (NFOs) came across all categories in October, through which a fund of ₹3,829 crore was raised.