Mutual Fund (MF) trends: Net equity inflows hit all-time high in October 2024; up 75% this year

The Indian mutual fund (MF) industry demonstrated resilience in October 2024 despite market volatility. Domestic equity funds experienced a 3.6% MoM decline in assets under management (AUM), dropping to US$ 387.32 billion (Rs. 32,60,000 crore), largely due to a 6.2% fall in the Nifty index. However, the industry saw a record US$ 5.92 billion (Rs. 49,800 crore) in net equity inflows, marking a 37% increase compared to September 2024’s US$ 4.33 billion (Rs. 36,400 crore). Systematic Investment Plan (SIP) inflows reached a historic high of US$ 3.01 billion (Rs. 25,320 crore), reflecting a 49.6% YoY growth.

Despite the dip in market indices, equity schemes reported a 3.5% MoM rise in sales, totalling US$ 10.33 billion (Rs. 86,800 crores). SIP inflows continued their upward trend, contributing to long-term wealth creation. Redemptions slowed by 22.1% MoM, indicating calmer investor sentiment. The month also saw notable shifts in sector allocations, with increased exposure to Private & PSU Banks, Capital Goods, Healthcare, Technology, and Cement, while sectors like Oil & Gas, Consumer Durables, Automobiles, Non-Banking Financial Companies (NBFCs), and Retail saw reduced allocations. Private Banks led the equity allocations, with an increase to 16.8%, driven by strong performances from ICICI Bank, State Bank of India, and HDFC Bank. Technology and Capital Goods sectors also saw a rise in fund allocations. At the same time, Oil & Gas continued its underperformance, reaching an 11-month low.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.