<a href="https://www.mid-day.com/business/business-news/article/amfi-streamlines-process-for-transmitting-mutual-fund-units-after-investors-death-23640285" target="_blank" rel="none noopener">Association of Mutual Funds of India (AMFI)</a> on Wednesday said the equity mutual fund investments declined nearly 14 per cent to Rs 32,994 crore in October amid market volatility, according to news agency PTI.
The mutual fund industry had attracted inflows of Rs 38,306 crore in September in the equity schemes, a growth of 31 per cent over August despite market volatility.&nbsp;
Large-and-midcap funds emerged as the most preferred category, attracting Rs 8,484.23 crore in net investments, according to IANS. Small-cap funds witnessed inflows of Rs 6,407.50 crore, while flexicap funds garnered Rs 4,979.95 crore. Midcap funds mopped up Rs 4,892.62 crore, while multicap funds received Rs 2,977.86 crore.
However, despite the decline, this was the 60th consecutive month of net inflows into the equity category.
<a href="https://www.mid-day.com/business/business-news/article/equity-mutual-fund-inflow-surges-26-to-rs-28973-crore-in-june-23639163" target="_blank" rel="none noopener">The equity schemes</a> held Rs 37.14 lakh crore asset under management as on October 31.
<h2>SIP declines</h2>
In October, there was a marginal decline in the investments into Systematic Investment Plans (SIPs). It was at Rs 32,160 crore from September's Rs 32,490 crore.
The SIP accounts too reduced from 10.06 crore in September to 10 crore in October.
AMFI chief pointed out that the SIP flows have increased 10 per cent in October when compared with the over Rs 29,000 crore in the same period last year.
<h2>Economic activity remains strong</h2>
According to AMFI chief executive Venkat Chalasani the volatile market condition may have had an impact on the flows. However, he said factors like re-rating of Indian equities by foreign brokerages and moderating oil prices bode well.
He further said the robust corporate earnings and high credit growth by banks are positive from a future perspective as they reflect the strength in underlying economic activity.
Foreign investors were net sellers of equities in October
He added that <a href="https://www.mid-day.com/business/business-news/article/market-round-up-fiis-offload-equities-worth-rs-34970-crore-diis-buy-rs-33460-crore-of-equities-23653183" target="_blank" rel="none noopener">foreign institutional investors</a> pulled out Rs 34,843 crore of Indian equities in October. Chalasani said that a majority of investors are continuing their SIPs because of the long-term potential in the Indian economy.
In terms of exchange traded funds, both gold and silver exchange-traded funds witnessed inflows of over Rs 3,000 crore each during October.
According to AMFI there were 28 new fund offers across all categories in October, and they mobilised Rs 3,829 crore of funds.
(With inputs from PTI and IANS)

In October, Systematic Investment Plans  were at Rs 32,160 crore from September`s Rs 32,490 crore

Equity mutual fund investments drop 14 per cent to Rs 33,000 crore in October

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In October, there was a marginal decline in the investments into Systematic Investment Plans.  It was at Rs 32,160 crore from September's Rs 32,490 crore

Equity mutual fund investments drop 14 per cent to Rs 33,000 crore in October on market volatility

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Home / Business / Business News / Article / Equity mutual fund investments drop 14 per cent to Rs 33,000 crore in October on market volatility