Monthly contributions through systematic investment plans (SIPs) into mutual funds declined marginally by around 1% month-on-month to ₹32,160 crore in October, compared with ₹32,490 crore in September, according to the latest data released by the Association of Mutual Funds in India (AMFI).
This was the first month-on-month decline in SIP inflows after five consecutive months of increases.
However, monthly SIP contributions remained above ₹32,000 crore for the third consecutive month.
The number of SIP accounts also declined to 10 crore in October from 10.06 crore in September, a reduction of around 6 lakh accounts.
Equity mutual fund inflows decline; large-cap funds see higher allocations
Separately, net inflows into equity mutual funds declined 13.8% month-on-month to ₹32,994 crore in October, compared with ₹38,293.5 crore in September.
Large-cap funds attracted inflows of ₹1,032 crore, up from ₹859.5 crore in September, marking the second consecutive month of positive inflows after outflows in July and August.
Small-cap fund inflows declined 29.1% to ₹6,408 crore from ₹9,039 crore, while mid-cap fund inflows fell 37.5% to ₹4,893 crore from ₹7,835 crore.
Flexi-cap funds attracted ₹4,980 crore, while large and mid-cap funds recorded inflows of ₹8,484 crore during the month.
Debt mutual funds see inflows of ₹1.13 lakh crore
Debt mutual funds recorded net inflows of ₹1,13,438 crore in October, reversing net outflows of ₹1,83,156 crore in September.
Liquid funds attracted ₹70,534 crore, while overnight funds saw inflows of ₹54,893 crore. Money market funds added ₹1,502 crore to the inflows.
Commenting on the October mutual fund trends, Neeraj Jain, Fund Manager – Fixed Income, The Wealth Company Mutual Fund, said debt fund flows reversed seasonally with the start of a new quarter, following quarter-end outflows in September.
However, some debt fund categories continued to see outflows. Corporate bond funds recorded outflows of ₹3,143 crore, followed by short-duration funds at ₹2,093 crore and banking and PSU debt funds at ₹1,238 crore.
Jain attributed the pressure on domestic bond yields to higher crude oil prices, the RBI rate hike and tighter liquidity following the easing of FCNR(B) inflows. He said domestic yields had moved higher across the yield curve.
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