Equity MF investments drop 14% to ₹33,000 crore on market volatility

Detailed summary

Equity mutual fund investments witnessed a nearly 14 per cent fall to Rs 32,994 crore in October as compared with September's Rs 38,306 crore inflow, industry body Amfi said on…

Both gold and silver exchange-traded funds saw inflows of over ₹3,000 crore each during October

Equity mutual fund investments witnessed a nearly 14 per cent fall to ₹32,994 crore in October as compared with September's ₹38,306 crore inflow, industry body Amfi said on Wednesday.

This is the 60th consecutive month of net inflows into the equity category.

The overall assets under management across equity schemes stood at ₹37.14 lakh crore as on October 31, it said, adding that the fall in the numbers was due to market correction.

Equity inflows had jumped by over 31 per cent in September as compared to August despite market volatility.

October also saw a marginal decline in the amount of money flowing in from the retail investors' favourite Systematic Investment Plans (SIPs) to ₹32,160 crore from September's ₹ 32,490 crore.

The number of contributing SIP accounts declined to 10 crore in October from 10.06 crore in September.

Association of Mutual Funds of India (Amfi) chief executive Venkat Chalasani said that the market volatilities may have had an impact on the flows, but added that factors like re-rating of Indian equities by foreign brokerages and decline in oil prices bode well.

Other factors like strong corporate earnings and high credit growth by banks are also positive from a future perspective as they indicate the strength in underlying economic activity, he said.

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