Even as we witnessed stock market volatility in October on the back of macro factors such as rupee depreciation and rising crude oil prices, the retail investors have continued to remained resilient with SIP flows in equity mutual funds soaring to all-time high levels. In the month of October, SIPs have registered a robust flow of Rs 7,985 crore, as compared to Rs 7,727 crore in the previous month of September.
This implies an increase of Rs 258 crore in the latest month, as compared to the previous high of Rs 7,727 crore in September. Equity funds saw inflows of Rs 12,622 crore, the highest in the current fiscal ahead of May’s inflow of Rs 11,350 crore.
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The flows in the month of October, as the equity markets remained choppy, with the Nifty touching the lowest point of 10,005 in this calendar year. Mutual funds’ asset base rose to Rs 22.23 lakh crore by October-end, a slight increase of 1% from the preceding month/ According to Amfi data, the asset under management (AUM) of the industry, comprising 42 players, was Rs 22.04 lakh crore at the end of September.
“The industry showed resilience despite recent market events and the ensuing volatility in both debt and equity segments,” Association of Mutual Funds in India (Amfi) Chief Executive NS Venkatesh told PTI. He further said that retail inflows showed a healthy improvement of almost 30% over the last month. While the inflows have remained robust, the industry has witnessed an outflow of Rs 2.3 lakh crore in September, which market participants attributed to nervousness among corporate investors following the IL&FS default.