Mid-Cap Investment Schemes The Pick Of Mutual Funds In October

50% of total mutual funds inflows were in the mid-and small-cap investment schemes

Fund inflows into equity mutual funds declined in October compared to September, but mid-cap and small-cap investment schemes can take comfort as they accounted for one-third of the capital inflows.

The equity mutual funds inflows stood at Rs 9,390 crore in October compared to Rs 14,077 crore in September, according to data released by the Association of Mutual Funds in India (AMFI).

“About one-third of equity net inflows came into mid-cap and small-cap schemes, only 2 percent in large cap. Sectoral/thematic schemes also continue to garner inflows (29 percent of net inflows) and folio additions,” said Kislay Upadhyay, Smallcase Manager and Founder of FidelFolio Investments.

He further noted that 50 percent of total new folio additions were in the mid-and small-cap investment schemes, while large-caps’ share was only 9 percent.

Mutual fund (MF) folios crossed all-time high at 13,90,77,745 crores in October. Retail MF folios too were at all-time high at 11,08,00,239 crore in October.

Commenting on AMFI data, Akhil Chaturvedi, Chief Business Officer, Motilal Oswal Asset Management Company, said “(the) trend in SIP contribution re-affirms the trend of financialisation of household savings even in the face of persistent concerns on the global macro front. The Indian economy’s resilience during these troubled times globally is also helping. However, to really gauge retail investors sentiment, we would need to closely watch the about 12 percent dip in the number of new SIPs registered in October compared to average of the last two months.”  

Investments through systematic investment plans (SIP) stood at Rs 13,040.64 crore, up from Rs 12,976.34 crore in September.

According to AMFI data, there were 19,72,984 new SIPs registered in October. The total number of SIP accounts for the month stood at 5,93,30,069.

“Markets continue to react to the global factors and domestic rate hikes. However, mutual fund investors have shown resilience and continue to invest in SIPs, with consistent contribution month-on-month. There is growth in overall equity AUM and folios too,” said AMFI’s Chief Executive N S Venkatesh.

The net assets under management (AUM) of the mutual fund industry in October was Rs 39,50,323.28 crore.

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