Equity mutual fund schemes attracted a net inflow of ₹38,306 crore in September, rising 31 per cent from the preceding month, driven by strong investor interest in mid-cap and small-cap funds despite underperformance in the equity market. The inflow was higher than ₹29,329 crore recorded in August, according to data released by the Association of Mutual Funds in India (AMFI) on Monday.
Among equity categories, small-cap funds attracted the highest net inflow of ₹9,039 crore, followed by mid-cap funds at ₹7,835 crore. Large-cap funds, meanwhile, saw net inflows of ₹860 crore during the month." Equity inflows jumped sharply in a month when markets were under pressure.
Much of that reflects the lasting faith Indian investors have in equities as one of the best long-term routes to wealth creation. Part of it may also have come from money leaving debt and hybrid funds," Nirav Karkera, Head of Research and Fund Manager, W by Groww, said.
In contrast, debt mutual fund schemes witnessed a net outflow of ₹1.83 trillion in September, significantly higher than the outflow of ₹8,127 crore recorded in August. Consequently, the mutual fund industry reported an overall net outflow of ₹1.33 trillion during the month, compared with a net inflow of ₹41,353 crore in August.
The industry's total assets under management (AUM) declined to ₹82.64 trillion at the end of September from ₹87.07 trillion at August-end.