Inflows through SIPs rose marginally to ₹29,530 crore, compared with ₹29,361 crore in the previous month.
Debt mutual funds received ₹1.60 lakh crore, led largely by flows into liquid funds, overnight funds, and ultra short-term funds. Due to mark-to-market gains, the industry’s net assets under management rose to ₹79.62 lakh crore from ₹75.61 lakh crore in the previous month, as per data from the Association of Mutual Funds of India (AMFI).
Flexicap funds received the highest inflows at ₹8,928 crore, accounting for one-third of equity flows and higher than September’s ₹7,029 crore. Multicap funds, which invest in a mix of large, mid, and small-cap stocks, saw inflows of ₹2,500 crore, lower than the previous month’s ₹3,560 crore.
AgenciesThat Shrinking Feeling: Uncertainty over market direction holds back fresh lump sum investments l SIP inflows rise marginally l Debt mutual funds draw big money
Midcap schemes garnered ₹3,807 crore, lower than ₹5,085 crore in the previous month, while small-cap schemes saw inflows of ₹3,476 crore, compared with ₹4,363 crore in September. Allocation to sectoral funds rose marginally to ₹1,366 crore, higher than September’s ₹221 crore.
“Inflows across small cap, midcap, and large cap categories have dipped, partly on account of profit booking and a cautious stance amid range-bound markets,” says Suranjana Borthakur, head of distribution & strategic alliances, Mirae Asset Investment Managers.
October, being the first month of the quarter, typically sees increased flows into debt funds. Liquid funds recorded the highest collections at ₹89,375 crore, followed by overnight schemes at ₹24,050 crore and ultra short-term funds at ₹15,066 crore.
Hybrid Schemes
The hybrid category, which invests in a mix of two or more assets, saw net inflows of ₹14,156 crore compared with ₹9,397 crore in September, led largely by multi-asset allocation funds and arbitrage funds. Arbitrage funds, which are more tax-efficient than liquid funds, saw inflows of ₹6,920 crore compared with outflows of ₹988 crore in the previous month, while multi-asset allocation funds saw collections rise to ₹5,344 crore against ₹4,982 crore in September. “The strength of flows into debt and multi-asset funds suggests that investors are becoming more deliberate about diversification and risk management,” says Umesh Sharma, CIO – debt, The Wealth Company Mutual Fund.
A sharp rise of 56% in the price of gold and 62% in silver has led to increased flows into precious metals schemes. Gold ETFs saw inflows of ₹7,743 crore in October, slightly lower than the previous month’s ₹8,363 crore, while silver ETFs recorded inflows of ₹3,412 crore compared with ₹5,341 crore in the previous month.
“India’s Gold ETFs are graduating from tactical trade to strategic allocation,” says Karthick Jonagadla, investment manager on smallcase and founder and CEO of Quantace Research.
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