Debt mutual funds too witnessed inflows of ₹43,634 crore after the outflows in September, as corporate treasuries came back to liquid funds with October being the first month of the third quarter of the financial year. The average assets under management inched up to ₹47.52 lakh crore from ₹47.50 lakh crore in September.
Equity mutual funds garnered ₹19,957 crore in October against ₹14,091 crore in September, according to data from Association of Mutual Funds of India (AMFI). Investments through Systematic Investment Plans (SIPs) also reached a new high of ₹16,928 crore against ₹16,042 crore in September.
Within equity schemes, small- cap funds got the highest flows, followed by thematic funds and multi-cap funds. Small-cap funds received ₹4,495 crore in October compared to ₹2,678 crore in September aided by new fund offers (NFOs) from Baroda BNP Small Cap Fund and Quantum Small Cap Fund.
“Both midcap and smallcap indexes have seen a sharp rally over the last six months and one year. Consequently, investors have also flocked to this category with ever increasing flows,” said Melvyn Santarita, analyst – manager research, Morningstar Investment Adviser.
Mid-cap funds saw flows of ₹2,409 crore. Multi-cap funds, which invest in a mix of large-cap, mid-cap and small-cap stocks, saw inflows of ₹2,911 crore. Flexicaps saw inflows of ₹2,169 crore, while large cap funds saw inflows of ₹724 crore.
In the debt space, liquid funds saw inflows of ₹33,000 crore, while some family offices put money into the so-called duration categories like gilt funds, which saw inflows of ₹2,000 crore. Corporate bond funds got inflows of ₹1,940 crore.”With yields moving up, investors are showing interest in debt funds,” said Anand Varadarajan, business head, Tata Mutual Fund. “At the lower end of the curve, investors are putting in money to earn a higher yield in liquid funds, while those with an appetite for risk are taking a duration call and investing in gilt funds.”
Among hybrid products, multi- asset funds saw flows of ₹2,410 crore, followed by arbitrage funds which saw flows of ₹5,523 crore. Balanced advantage funds of ₹960 crore.
Gold ETFs saw inflows to the tune of ₹841 crore as investors allocated to the yellow metal on worries about the geopolitical tensions between Israel and Hamas.