Equity mutual fund inflows surge by 42% to Rs 19,957.17 crore in October

The inflows into the equity mutual fund category have increased by approximately 42% from Rs 14,091.26 crore in September to Rs 19,957.17 crore in October. Small cap funds have made a comeback receiving the highest inflow in October. The category has received an inflow of Rs 4,495.13 crore in October, compared to an inflow of Rs 2,678.47 crore in September. In other words, the inflow into the category grew by approximately 68% in October. All equity fund categories witnessed inflows in October.

Among the equity mutual fund categories, the sectoral/thematic category took the second spot. The category received an inflow of Rs 3,895.72 crore. The category has been receiving the inflows for the last five consecutive months. The ELSS category received the lowest inflow in October. The category received a total inflow of Rs 266.35 crore, compared to an outflow of Rs 141.15 crore in September.

Dividend yield funds witnessed a total inflow of Rs 397.25 crore. The large cap category has gained investors interest in October. The category witnessed an inflow of Rs 723.81 crore after witnessing outflows for five consecutive months.

The inflows into debt mutual funds have increased in October. The category received an inflow of Rs 42,633.70 crore, compared to an outflow of Rs 1.01 lakh in September. Except for overnight funds, low duration funds, medium duration funds, credit risk fund, and banking & psu funds all other debt categories saw inflows in October. Liquid funds saw the highest inflow of Rs 32,963.80 crore against an outflow of Rs 74,176.55 crore in September. Money Market Funds recorded an inflow of Rs 6,248.46 crore.

Overnight funds witnessed the highest outflow of Rs 3,444.80 crore in October, compared to an outflow of Rs 1,274.42 crore in September.

Medium to long duration funds received the lowest inflow of Rs 87.34 crore, compared to an outflow of Rs 17.83 crore in September.

The inflow into hybrid mutual fund categories declined in October. The category received a total inflow of Rs 9,906.86 crore in October, compared to an inflow of Rs 18,650.45 crore in September. Every hybrid category witnessed inflows in October except for conservative hybrid funds. Arbitrage funds recorded the highest inflow of Rs 5,523.15 crore, compared to an inflow of Rs 10,175.55 crore in September.

The multi asset allocation category witnessed the second highest inflow of Rs 2,410.04 crore, followed by the dynamic asset allocation/balanced advantage fund which saw an inflow of Rs 960.44 crore in October. Conservative hybrid funds witnessed an outflow of Rs 1.73 crore crore, compared to an inflow of Rs 82.27 crore in September.

The ‘others’ category which includes Index Funds and ETFs witnessed an increase in inflow in October by 64%. The category witnessed an inflow of Rs 7,745.89 crore, against an inflow of Rs 4,719.70 crore in September. All categories witnessed inflows. Other ETFs received the highest inflow of Rs 4,769.26 crore, compared to an inflow of Rs 3,241.92 crore in September. Index funds in October saw an inflow of Rs 2,088.61 crore. Gold ETF witnessed the inflows of Rs 841.23 crore. Fund of funds investing overseas witnessed an inflow of Rs 46.80 crore.

The total assets under management (AUM) in October 2023 increased by merely 0.30% and stood at Rs 46.71 lakh crore, as against Rs 46.57 lakh crore in September.

Around 14 open-ended NFOs were floated in October, which together mobilised Rs 3,638 crore. No close-ended NFOs were floated in October.