Inflows into equity MFs in Oct lowest since June

INFLOWS INTO EQUITY schemes in October hit the lowest level since June even as the benchmark equity indices rose nearly 5% during the month.

- ANANYA GROVER

However, the contribution of systematic investment plans (SIPs) continued to swell and hit an all-time high of ₹29,529.27 crore with contributions from 94.52 million accounts.

Overall, inflows into equity schemes recorded a four-month low of ₹24,690 crore, down 19% from September. The worst hit was the large cap category, which fell the most month-on-month by 58%, multi-cap fell nearly 30%, while midcap and small cap saw a month-on-month decline of 25% and 20%, respectively. Sectoral and thematic schemes sawa 12% rise in inflows to ₹1,399 crore. Redemption in equity schemes was the highest since July at ₹38,920.83 crore.

Venkat N Chalasani, chief executive, Amfi, said the positive sentiment in the market was driven by expectations of the US Federal Reserve reducing interest rates, some positive talks about the progress of US-China trade, a bit of strong corporate earnings and domestic demand on account of the festive season.