MF industry AUM jumps to Rs 79.9 lakh crore despite softer equity inflows

October witnessed subdued inflows into equity mutual funds, as AMFI’s latest data showed that net inflows into equity schemes declined to Rs 24,690 crore. It was down around 19% month-on-month basis from Rs 30,422 crore in September.

As per the AMFI data, the total mutual fund industry AUM rose to Rs 79.87 lakh crore, up from Rs 75.61 lakh crore in September, while equity AUM climbed to Rs 35.16 lakh crore.

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The flexi-cap funds bucked this trend, registering a net inflow of Rs 8,929 crore, higher than in September.

Mid and small-cap funds saw their inflows fall to Rs 3,807 crore and Rs 3,476 crore, respectively, while large-cap schemes saw net inflows of just Rs 972 crore.

AMFI data further mentioned that the ELSS schemes also recorded a net outflow of Rs 666 crore. Despite moderation in flows, equity AUM increased to Rs 35.16 lakh crore, supported by the rally in equity markets seen during October.

In October, the hybrid schemes drew net inflows of Rs 14,156 crore while arbitrage funds continued to find favour with inflows of Rs 6,920 crore. The multi-asset allocation funds attracted Rs 5,344 crore.

Further, the dynamic asset allocation and balanced hybrid funds saw moderate contributions, with the hybrid category’s AUM reaching Rs 10.69 lakh crore by month-end.

Gold ETFs had a strong outing as it gathered Rs 7,743 crore to help the category’s AUM cross Rs 1 lakh crore for the first time, with Silver ETFs in tow.

“Equity and hybrid active categories saw Rs 0.40 lakh crore of net inflows, while gold continued to attract tactical allocations with an additional Rs 6,000 crore, supported by improving global sentiment. NFOs contributed nearly Rs 6,000 crore, signalling better investor appetite for new product strategies,” Kartik Jain, MD & CEO, Shriram AMC, said.

“Liquid funds recorded Rs 90,000 crore in flows and money market funds added Rs 17,000 crore, reinforcing the preference for liquidity and lower duration risk. The addition of 40 lakh new folios and a 45% YoY jump in new SIP registrations to Rs 29,631 crore highlight growing investor discipline and broad-based retail participation. Flexi Cap, Arbitrage and Multi Asset Allocation funds emerged as the top gainers in equity inflows,” Jain added.