BackEquity mutual fund inflows surge to ₹19,932 crore in October, SIP contributions at record-high: AMFI data
Small-cap funds registered an influx of ₹4,495 crore in October, compared to ₹2,678 crore in September, which reflected the rising interest of investors in smaller companies, according to AMFI data.
PremiumEquity mutual fund inflows surged to ₹19,932 crore in October 2023 compared to ₹13,857 crore in September despite the risk-off sentiment in the stock markets, according to data released by the Association of Mutual Funds in India (AMFI) on Thursday, November 9. This is the 32nd consecutive month of inflows on a net basis.
Small-cap funds registered an influx of ₹4,495 crore in October, compared to ₹2,678 crore in September, which reflected the rising interest of investors in smaller companies, according to the data. The category's average assets under management (AAUM) also crossed the milestone of ₹2 lakh crore for the first time in its history.
Notably on the Systematic Investment Plans (SIP) front, the total SIP contributions stood at an all-time high of ₹16,927.86 crore in October. The number of SIP accounts stood at highest ever at 7,30,02,604 for October compared to 7,12,93,738 in September.
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The SIP AUM stood at ₹8,59,923.86 for October, compared to ₹8,70,363.38 crore for September. The number of net SIPs added in October was 17,08,866, which is the highest till date. The number of new SIPs registered in October stood at 34,66,354, according to the data. Interestingly, SIPs now account for a larger part of inflows (vs one-time investment) and are more structural - which will support the market, noted analysts.
The benchmark Nifty 50 lost nearly 3 per cent in October, recording its worst month in 2023 so far. Analysts said investors should be cautious about hiking allocations into small-caps, given the recent rally and volatility in markets.
After six months of outflows, large-cap funds saw inflows of ₹724 crore in October, reflecting renewed investor faith in established companies. Mid-cap funds also saw a substantial increase in investments, with inflows totaling ₹2,409 crore in October, compared to ₹2,001 crore in the previous month.
“In the month of October, the equity markets continued to experience a risk-off sentiment, with the index falling below 19,000 levels. Despite this fall, equity mutual funds continued to exhibit resilience, recording a significant net inflow,'' said Akhil Chaturvedi, Chief Business Officer, Motilal Oswal.
Hybrid funds received investments worth ₹9,907 crore in October. Liquid funds, while still witnessing outflows, witnessed a reduction in the amount, with ₹32,964 crore in outflows in October, compared to ₹74,177 crore in September.
Debt-oriented schemes witnessed a net inflow of ₹42,634 crore in October after withdrawing funds in the past two months, primarily due to increased flows in the liquid fund category.
‘’Hybrid funds continued to experience healthy net inflows on led by arbitrage funds and multi-asset funds. This trend reflects the prevalent risk-off sentiment in the market, with investors seeking to diversify their investments while maintaining a focus on capital protection. Domestic flows continue to prove structural,'' added Chaturvedi.
Liquid funds saw the highest net inflow of ₹32,964 crore in the month under review as against the net outflow of ₹74,177 crore in September. Investor sentiment towards the gilt fund category was favourable during the month as the category witnessed net flows of ₹2,000 crore.
A total of 14 schemes were launched in October, all the 14 schemes were open ended scheme launched in the category, raising a total of ₹3,638 crore. Additionally, the quantum of net flows in gold exchange traded funds (ETFs) rose to ₹841 crore in October from ₹175 crore in the preceding month.
"Despite peaking interest rates, there's a notable surge in money market investments. Investors exhibit optimism in gilt funds and a remarkable increase in contributions to small-cap funds, indicating strong confidence. The large-cap category has also witnessed a noteworthy resurgence, reflecting broader market recovery,'' said NS Venkatesh, CEO, AMFI.
‘’SIP numbers show consistent month-on-month growth, underlining the strength of systematic investment plans. Looking ahead, we are confident in continued inflows into small and mid-cap funds, given the untapped potential in these segments. High SIP account openings indicate a growing, committed investor base,'' added NS Venkatesh.
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