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October month went well for the MF industry. The MF industry witnessed net inflows of Rs.80,500 crore last month due to which the AUM reached Rs.48 lakh crore.
Interestingly, the industry received net inflows of Rs.20,000 crore through equity funds and its gross monthly SIP flows reached all time high at Rs.17,000 crore.
Let us look at the key highlights of the month gone by:
Equity funds inflows increase
Overall, equity funds saw net inflows of Rs.19,950 crore. Notably, all fund categories saw net inflows last month with small cap funds witnessing the highest net inflows of Rs.4,500 crore. The AUM of small cap funds has also crossed Rs.2 lakh crore in October.
Sectoral/thematic funds and multi cap funds were the next in the list with net inflows of Rs.3,900 crore and Rs.2,900 crore, respectively mainly due to NFOs.
One interesting development is that the industry received net inflows of Rs.720 crore in large cap fund after 6 consecutive months of outflows.
Debt funds turn positive
Debt funds saw total net inflows of Rs. 43,000 crore largely due to liquid funds. The category received the highest net inflows of Rs.33,000 crore. Money market funds, ultra short duration and gilt funds received Rs. 6,200 crore, Rs.2,300 crore and Rs.2,000 crore, respectively.
Overnight funds and low duration funds recorded net outflows last month.
Hybrid funds inflows report decline
Hybrid funds saw net inflows of Rs.9,900 crore in Oct compared to Rs.19,000 crore in Sept. Arbitrage funds received the highest inflows of Rs.5,500 crore followed by multi asset allocation funds Rs. 2,400 crore.
Passives inflows increase
Index funds and Gold ETFs witnessed higher net inflows compared to September. Index funds and gold ETFs received net inflows of Rs.2000 crore and Rs.840 crore, respectively.
Other ETFs, which includes both equity and debt ETFs also reported net inflows of Rs.4,770 crore.
Other key highlights
- Retail investors held 13 crore MF folios and AUM of Rs.26 lakh crore
- MF industry launched 14 NFOs which collected Rs.3600 crore
- The industry added 34 lakh new SIPs. However, the net addition is 17 lakh
- SIP AUM is now Rs.8.60 lakh crore
- Baroda BNP Paribas Small Cap NFO received Rs.1100 crore, highest across all NFOs in Oct
NS Venkatesh, CEO, AMFI said that the MF industry has been continuing its growth run. He said, “Mutual Fund Industry’s growth has been on an upward trend, 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, indicates strong confidence.”
He also added, “The large-cap category has also witnessed a noteworthy resurgence, reflecting broader market recovery. 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.”
Akhil Chaturvedi, CBO, Motilal Oswal MF said, “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. Interestingly, SIPs now account for a larger part of inflows (vs one-time investment) and are more structural. This provides the market with a lot of strength.”
