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Equity mutual fund schemes attracted a net inflow of Rs 38,306 crore in September, rising 31 per cent from the preceding month, driven by strong investor interest in mid-cap and small-cap funds despite underperformance in the equity market. The inflow was higher than Rs 29,329 crore recorded in August, according to data released by the Association of Mutual Funds in India (AMFI) on Monday. Among equity categories, small-cap funds attracted the highest net inflow of Rs 9,039 crore, followed by mid-cap funds at Rs 7,835 crore. Large-cap funds, meanwhile, saw net inflows of Rs 860 crore during the month. " Equity inflows jumped sharply in a month when markets were under pressure. Much of that reflects the lasting faith Indian investors have in equities as one of the best long-term routes to wealth creation. Part of it may also have come from money leaving debt and hybrid funds," Nirav Karkera, Head of Research and Fund Manager, W by Groww, said. In contrast, debt mutual fund schemes .
Debt-oriented mutual funds witnessed a strong recovery in October, driven by investments in liquid schemes and attracting a net inflow of Rs 1.57 lakh crore after huge redemptions in the previous month. Notably, 14 of 16 debt mutual fund categories reported net inflows during the month, while medium-duration and credit risk funds maintained their trend of consistent outflows. The positive inflow boosted the asset base of debt mutual funds by 11 per cent to Rs 16.64 lakh crore in October-end from Rs 14.97 lakh crore at the end of September, according to data with Association of Mutual Funds on India (Amfi). As per the data, debt mutual funds attracted inflows of Rs 1.57 lakh crore in October, marking a sharp reversal from the outflows of Rs 1.14 lakh crore recorded in September. Within the debt fund, liquid funds led the inflows with Rs 83,863 crore, accounting for 53 per cent of the total, followed by overnight funds and money market funds with Rs 25,784 crore and Rs 25,303 crore,