Equity Mutual Fund Inflows Rise 31% To ₹38,307 Crore In September Led By Small, Mid-Cap Funds, AMFI Data Shows
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Equity mutual funds attracted ₹38,307 crore in September, up nearly 31% from August, even as domestic stocks remained under pressure. Small- and mid-cap schemes drew strong flows, while heavy debt fund withdrawals pulled overall mutual fund flows into negative territory.
Equity mutual fund inflows rose nearly 31% month-on-month to ₹38,306.55 crore in September, with investors stepping up allocations to small- and mid-cap schemes even as the domestic stock market remained under pressure, data released by the Association of Mutual Funds in India (AMFI) on Monday, October 12, showed.
Inflows increased from ₹29,328.62 crore in August, with small-cap funds attracting ₹9,038.57 crore and mid-cap schemes receiving ₹7,834.84 crore during the month. Large-cap funds also returned to positive flows, drawing ₹859.47 crore after recording withdrawals of ₹1,147.36 crore in August.
The increase came during a difficult month for equities, with the Nifty 50 falling nearly 6% in September amid higher crude oil prices, rising global bond yields and continued selling by foreign investors. The market decline also weighed on the value of equity fund assets, with assets under management falling to ₹37.54 lakh crore from ₹39.21 lakh crore in August.
While money continued to move into equity schemes, the broader mutual fund industry saw a sharp reversal in flows. Overall funds recorded net outflows of ₹1.33 lakh crore in September, compared with net inflows of ₹41,353.60 crore in August, as large withdrawals from debt schemes outweighed the money coming into equities.
Small-Cap, Mid-Cap Funds Draw Strong Inflows In September
Small-cap funds continued to draw investor money, with net inflows rising to ₹9,038.57 crore from ₹7,973.33 crore in August. Mid-cap schemes followed with ₹7,834.84 crore, up from ₹6,989.40 crore in the previous month.
The rise was not limited to these two categories. Large-cap funds returned to inflows during September, while sectoral funds received ₹1,840.02 crore after seeing withdrawals of ₹53.19 crore in August. Thematic schemes attracted another ₹1,800.07 crore.
The broad rise across equity categories helped lift overall equity fund collections by nearly ₹9,000 crore from August, even as falling stock prices reduced the value of assets managed by the schemes.
Debt Fund Outflows Rise To ₹1.83 Lakh Crore
The picture was sharply different in debt funds, where net withdrawals widened to ₹1.83 lakh crore in September from just ₹8,127.32 crore in August.
Liquid funds accounted for more than half of the withdrawals, recording an outflow of ₹95,743.20 crore after receiving ₹19,934.29 crore in the previous month. Corporate bond funds also saw ₹4,652.24 crore leave the category, compared with ₹3,190.17 crore in August.
The heavy redemptions from debt schemes were large enough to offset the continued inflows into equities and push the mutual fund industry into an overall net outflow for September.
Other categories showed a mixed trend. Hybrid schemes recorded net outflows of ₹456.68 crore after receiving more than ₹10,000 crore in August, while exchange-traded funds attracted ₹15,501.40 crore. Gold ETFs received ₹4,450.61 crore during the month.
With market declines weighing on asset values and debt schemes seeing heavy withdrawals, the mutual fund industry's total assets under management fell to ₹82.64 lakh crore at the end of September from ₹87.08 lakh crore a month earlier.
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This article is for informational purposes only and should not be considered investment advice from Kotak Neo. For compliance T&C and disclaimers, Visit www.kotakneo.com/disclaimer
Rochelle Britto has spent 8+ years decoding India's markets, businesses, and consumer economy, reporting for ET Prime and Times Internet along the way, covering the stories behind the numbers.
A Mumbai native and perpetual planner of the next holiday, she stays far, far away from the eternal question, “Where are we going next?” When she's not chasing headlines, she's chasing new cultures, open roads, and a bit of quiet in nature.
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