Equity MFs log Rs 5,215 crore inflow in Oct on positive sentiments, rally in equity markets

New Delhi: Positive sentiments and rallies in the equity markets helped equity-oriented mutual funds to attract Rs 5,215 crore in October, making it the eighth consecutive monthly net infusion.

However, the quantum of net inflows dropped from September, when it attracted Rs 8,677 crore, data with the Association of Mutual Funds in India (Amfi) showed on Wednesday.

"This decline could be a result of investors booking profits with markets trading near all-time highs.

"Also, many investors would have chosen to stay on the sidelines given higher valuations. This is evident as the fund mobilised fell from Rs 36,656 crore in September to Rs 28,671 crore in October," said Himanshu Srivastava, Associate Director - Manager Research, Morningstar India.

Akshat Garg -- Manager, Research Investica - a platform for investing in mutual funds also attributed the decline in net inflows to profit booking.

"Broadly mood to invest in equities continues with positive net sales in pure equity funds of Rs 5,200 crore. However, at the same time, we do see an element of profit booking with higher absolute redemption of Rs 23,500 crore," Akhil Chaturvedi, Chief Business Officer, Motilal Oswal

AMC, said.

According to Morningstar India's Srivastava, positive sentiments and rallies in the equity markets continue to attract investors into equity-oriented mutual funds in October as well.

Equity schemes have been witnessing a net inflow since March this year and the segment has received a net inflow of Rs 73,766 crore during this period, highlighting the positive sentiments among investors.

Before this, such schemes had consistently witnessed outflows for eight months from July 2020 to February 2021, losing Rs 46,791 crore.

The inflow pushed average assets under management (AUM) of the mutual fund industry to an all-time high of Rs 38.21 lakh crore at October-end from Rs 37.41 lakh crore at September-end.