In a testament to the growing trust in equity investments, the systematic investment plan (SIP) contributions have soared, inching close to the impressive Rs 17,000-crore milestone in the fiscal year 2024. The large-cap equity funds, after a brief spell of net outflows, witnessed a substantial resurgence, garnering Rs 723.8 crore in net inflows in October alone.
Record-Breaking SIP Contributions
SIP contributions scaled new heights, reaching an all-time high of Rs 16,928 crore, reaffirming investors’ confidence in this systematic approach to equities. The fiscal year 2024 has already witnessed SIP contributions surpassing the monumental Rs 1-trillion mark. Despite this, the total SIP assets under management (AUM) experienced a slight dip, resting at Rs 8.6 trillion as of October-end.
Equity Inflows Surge Across Categories
Open-ended equity schemes demonstrated a robust performance, recording net inflows of Rs 19,957 crore, marking a significant 41% increase from September’s Rs 14,091 crore. All equity categories experienced positive inflows, with small-cap and mid-cap funds attracting Rs 4,495 crore and Rs 2,408 crore, respectively. The multi-cap category also secured Rs 2,911 crore, while sectoral/thematic funds and flexi-cap funds witnessed notable inflows of Rs 3,896 crore and Rs 2,168 crore, respectively.
Debt Schemes Witness Strong Inflows
Open-ended debt schemes observed substantial net flows, reaching Rs 42,634 crore, propelled by nearly Rs 33,000 crore pouring into liquid funds. Despite peaking interest rates, investors exhibited confidence in corporate bond and Gilt fund categories, each seeing close to Rs 2,000 crore in net flows.
Hybrid Funds Display Resilience
Hybrid funds, particularly arbitrage funds (Rs 5,523 crore) and multi-asset allocation funds (Rs 2,410 crore), continued to exhibit resilience. This trend reflects a risk-off sentiment among investors who seek diversification while prioritizing capital protection.
Index Funds, ETFs, and Gold ETFs Shine Bright
Index funds (Rs 2,088 crore) and ETFs (Rs 4,769 crore) maintained their shine, while Gold ETFs experienced a surge in investments, reaching Rs 841 crore. Gold ETFs remained a safe haven amidst geopolitical tensions and fluctuating prices.
AUM and Market Dynamics
As of October 31, the mutual fund industry’s net AUM stood at Rs 46.7 trillion, with an average AUM for the month at Rs 47.8 trillion. These figures showcase the industry’s stability and resilience amidst evolving market conditions.
