Equity fund inflows surge 21% to ₹41,887 crore in October; SIPs reach record high

On November 11, equity mutual fund inflows saw a notable jump of 21.69 percent month-on-month, reaching ₹41,887 crore in October, according to the latest data from the Association of Mutual Funds in India (AMFI). 

Moreover, open-ended equity funds continued to perform well, with positive inflows for the 44th month in a row. All three segments, including small-cap, mid-cap, and large-cap—saw strong demand during the month.

Large-cap funds saw a nearly two-fold increase in inflows, which surged to ₹3,452 crore. In the interim, mid-cap funds had a 50 percent jump in net investments, totaling ₹4,683 crore, while small-cap funds saw a 23 percent rise in inflow, attracting ₹3,772 crore.

In October, hybrid mutual funds saw a significant surge in inflows, attracting ₹16,863.3 crore, compared to ₹4,901 crore in September. 

Sectoral and thematic mutual funds declined by a small margin to ₹12, 278.8 crore compared with ₹13,255 crore during the preceding month.

The fixed-income category saw a major overhaul as well. Liquid mutual funds received a record figure of ₹83,863.3 crore in inflows after making a significant outflow of ₹72,666 crore in September. Credit risk mutual funds saw outflows decline to ₹357.8 crore, from ₹484 crore in the prior month.

Corporate bond mutual funds saw steady inflow at ₹4,644.4 crore compared with ₹5,039 crore in the previous month. At ₹532.8 crore, dividend yield mutual funds recorded a sharp decline in flows against ₹1,530 crore drawn in the previous month.

In the tax-saving segment, at ₹362 crore, Equity Linked Savings Schemes (ELSS) saw net inflows against an outflow of ₹349 crore in the previous month.

Mutual fund AUM edges up

Overall, the total Assets Under Management (AUM) across mutual funds edged up to ₹67.25 lakh crore in October, up from ₹67.09 lakh crore in September.

Inflows into Exchange-Traded Funds (ETFs) surged to ₹13,441.8 crore, reaching ₹13,441.8 crore, up from just ₹381 crore the previous month.
 

NFO highlights

Inflows into New Fund Offers (NFOs) experienced a significant decline, dropping to ₹6,078 crore from ₹14,575 crore in September.

SIP investment boost

In October, the mutual fund industry saw remarkable growth in Systematic Investment Plans (SIPs). A total of 63,69,919 new SIPs were registered, contributing to a record SIP AUM of ₹13,30,429.83 crore. 

The SIP contribution reached an all-time high of ₹25,322.74 crore, up from ₹24,508.73 crore in September 2024. 

Furthermore, the number of active SIP accounts climbed to a new peak of 10,12,34,212, compared to 9,87,44,171 in the previous month, underscoring a strong surge in investor participation and confidence.

Hitesh Thakkar, Acting CEO, ITI Mutual Fund, says, "We are positive on the Indian economy and India's equity market will deliver a reasonably good return while comparing with other emerging markets. The Trump presidency in the US is broadly positive for us. We believe that the market is volatile due to short term factors like weak domestic earning cycle, delayed government spending for capital intensive sectors etc. However, investors should continue investing in equity mutual funds within a 3-5 years’ time horizon.”