Chasing the big fish: MFs cast their lines for record October catch

A haul of Rs 87,000 crore nearly doubles previous record, reeling in a lifeline for stability

Mutual funds (MFs) reinforced their record monthly inflows in October with an investment of Rs 87,000 crore (up to October 29), softening the downside pressure on domestic markets. Their prior record for monthly inflows was Rs 48,139 crore in May. This unprecedented monthly buying partially countered record monthly sales by foreign portfolio investors (FPIs) of Rs 1.1 trillion last month. The National Stock Exchange Nifty 50 ended October with a 6.2 per cent decline, marking its steepest monthly drop in four and a half years.

 

So, what factors enabled the record buying by domestic money managers?

 

First, higher inflows into