Equity mutual funds see record inflow of ₹41,887 crore in October

Equity mutual funds witnessed a record inflow of ₹41,887 crore in October, marking a surge of over 21% on a month-on-month (MoM) basis, fuelled by robust investments in thematic funds.

This also marks the 44th consecutive month of net inflow in the equity-oriented funds, highlighting the ever-increasing appeal of mutual funds among investors, data with the Association of Mutual Funds in India (AMFI) showed on Monday.

"October's numbers are indeed phenomenal, especially given the backdrop of a steep market correction. While earlier this year, equity inflows were buoyed by strong market performance, October marked a stark reversal.

"The 5-6% drop in both the Sensex and Nifty was one of the sharpest in recent years, similar to what we last saw in March 2020. Despite this, retail investors have shown remarkable resilience, with inflows exceeding ₹40,000 crore," Santosh Joseph, Co-founder and CEO of Germinate Investor Services, said.

Overall, the mutual fund industry witnessed an inflow ₹2.4 lakh crore in the month under review, after an outflow of ₹71,114 crore in September.The huge inflow was due to investments to the tune of ₹1.57 lakh crore into debt schemes.

The industry's net assets under management rose to ₹67.25 lakh crore last month from ₹67 lakh crore in September.

As per the data, equity-oriented schemes witnessed an inflow of ₹41,887 crore in October, as compared to ₹34,419 crore in September.

Before this, equity schemes saw an inflow of ₹40,608 crore in June.

Within the equity schemes, sectoral thematic attracted investors with the highest net inflows of ₹12,279 crore during the month under review. However, flow in the segment was less compared to ₹13,255 crore in September.