As per the latest AMFI report, the equity fund inflows for the month of October 2024 jumped by 21.69% month-on-month, which was quite significant in a volatile market like now. It is not just about October actually, as open-ended equity mutual funds inflows have been positive continuously for the 44th month at a stretch. They have been performing significantly well which is in turn pulling more investments. All three segments in the equity funds, small, mid, and large-cap funds have had high demand during the past 44 months. So, what’s driving these funds to perform well? How each segment of equity funds are performing? Let’s find out.
Market Capitalization & Inflows
The total inflow in the equity mutual funds in the month of October reached Rs. 41887 crore.
The large-cap mutual funds’ inflows increased two-fold compared to the previous month’s inflows and reached Rs. 3452 crore. The mid-cap funds witnessed a whopping 50% jump in their inflows and the net investments reached Rs. 4683 crore. The small-cap segment on the other hand witnessed a 23% surge in the inflow and added Rs. 3772 crore. However, the showstopper in October was hybrid mutual funds which attracted Rs. 16863.3 crore compared to Rs. 4901 crore in September. The tax-saving ELSS funds also witnessed an inflow of Rs. 362 crore compared to an outflow of Rs. 349 crore in September.
However, while the market-cap funds and hybrid funds added to the equity mutual fund inflows, the sectoral funds, and thematic funds’ inflows declined a bit to Rs. 12278.8 crore compared to last September’s Rs. 13255 crore.
Inflows Across other Mutual Funds
The fixed-income funds also witnessed a significant inflow of investments in October. Liquid mutual funds received the highest-ever inflow of Rs. 83863.3 crore. This inflow compared to September’s outflow from this category of funds to the extent of Rs. 72666 crore is quite significant. However, Credit Risk mutual funds from this fixed-income fund category witnessed a decline of around Rs. 357.8 crore in October.
The corporate bond mutual funds also witnessed an inflow of around Rs. 4644.4 crore in October however, it dipped from September’s inflow of Rs. 5039 crore. In this category, the dividend yield fund is the segment that saw a sharp decline in the inflows to Rs. 532.8 crore from September’s inflow of Rs. 1530 crore.
Not only mutual funds, but the ETFs also witnessed a surge in their inflow to Rs. 13441.8 crore from a nominal Rs. 381 crore in September.
Rising AUM & SIPs
The overall asset under management across all mutual fund segments rose to Rs. 67.25 lakh crore in October 2024, which has also inched up from Rs. 67.09 lakh crore in September 2024.
According to AMFI SIP Data, Systematic Investment Plans (SIPs) witnessed a sharp rise in new registrations. In October only, there were around 6369919 new SIP registrations which surged the SIP AUM to Rs. 1330429.83 crore. The contribution from SIP investments also surged during October to an all-time high of Rs. 25322.74 crore, compared to Rs. 24508.73 crore in the preceding month.
Not just the AUM or the new registrations or SIP inflows, the active SIP accounts also inclined from 98744171 in September to 101234212 in October 2024. This indicates the high demand amongst domestic investors and their confidence.
Wrapping up
In a market that has been quite volatile in the last few weeks, with different geopolitical and poor earnings pressure, mutual fund inflows are actually surprising as they are surging continuously. This indicates the growing strength of retail investors and the growth story of India, which is still relevant even after Trmups win in the US. India’s economy and equity market are poised for growth even when other emerging markets look sluggish. However, investing in equity funds should be well analyzed, and planned and continuous monitoring is required.
Source: Livemint
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