Investors pour Rs 38,307 crore into equity funds

Mumbai: Equity mutual fund schemes saw a net inflow of Rs 38,306 crore in September, registering a 31 per cent rise from the preceding month, as investors continued to pour money into mid-cap and small-cap funds despite heightened stock market volatility and sustained selling by foreign portfolio investors (FPIs).

The inflow was higher than the Rs 29,329 crore recorded in August, as per data released by the Association of Mutual Funds in India (AMFI) on Monday.

Further, monthly contributions through systematic investment plans (SIPs) touched an all-time high of Rs 32,490 crore in September, compared to Rs 32,297 crore in August.

According to the data, equity-oriented schemes witnessed a net inflow of Rs 38,306 crore in September. This was the highest inflow since April, when these schemes attracted Rs 38,440 crore.

Nitin Agrawal, CEO, Mutual Funds, InCred Money, said that despite heightened volatility in equity markets, every dip presented an opportunity, leading to increased flow activity.

“The strong inflows are particularly encouraging given that equity markets witnessed a correction during the month, accompanied by renewed selling by foreign portfolio investors (FPIs),” Himanshu Srivastava, Principal, Manager Research, Morningstar Investment Research India, said.

Among equity categories, small-cap funds attracted the highest net inflow of Rs 9,039 crore, up from Rs 7,973 crore in August. This was followed by mid-cap funds that received Rs 7,835 crore, compared with Rs 6,989 crore in the previous month. Together, these two categories accounted for around 44 per cent of the total net equity inflows during the month.

Additionally, flexi cap funds drew Rs 6,702 crore. Large-cap funds, meanwhile, turned positive at Rs 859 crore for the first time in three months, leading investors to find value entry points in quality large-cap stocks.

“This continued preference for mid and small cap strategies suggests that investors remain willing to look beyond near-term market conditions and stay invested in segments they see as offering long-term growth potential,” Varun Gupta, CEO of Groww Mutual Fund, said.