Mutual Fund Dynamics: A Dive into October's Trends

In October, equity mutual funds saw a 19% decline in net inflows, amidst record high SIP investments, a rally in gold ETFs, and increasing interest in silver ETFs. The overall AUM increased by over 5%. New investment schemes were launched, catering to both retail and sophisticated investors.

October marked a challenging month for equity mutual funds, experiencing a 19% drop in net inflows, according to industry data released by the Association of Mutual Funds of India (Amfi). This decline, however, was juxtaposed with a record high in systematic investment plans (SIPs), which amassed Rs 29,529 crore, reflecting sustained retail investor confidence.

With gold prices rallying, net inflows into gold exchange-traded funds (ETFs) reached Rs 7,743 crore, pushing the AUM in this segment past the Rs 1 lakh crore mark. Silver ETFs also saw significant interest with inflows exceeding Rs 3,000 crore, boosts driven by market volatility and precious metals' allure as safe-haven assets.

The market dynamics fostered a positive trend in overall mutual fund industry AUM, rising over 5% to Rs 79.88 lakh crore, partly due to a spike in debt scheme inflows. Industry players initiated 18 new schemes, mobilizing Rs 6,062 crore and introduced Specialised Investment Funds for high-value investors, highlighting innovation amidst shifting investor preferences.

(With inputs from agencies.)