Indian equity mutual funds took in 32,994 crore rupees net in October, down about 14 percent from 38,307 crore in September, according to data released on Wednesday by the Association of Mutual Funds in India (AMFI). It was still the 60th consecutive month of net equity inflows. AMFI attributed the fall to the market correction, and Bloomberg reported Indian stocks have sunk to an 18 month low.
Retail systematic investment plan (SIP) contributions eased only slightly, to 32,160 crore rupees from 32,490 crore, with contributing accounts at 10 crore against 10.06 crore in September. AMFI chief executive Venkat Chalasani said market volatility may have affected flows, while pointing to foreign brokerage re-ratings of Indian equities and lower oil prices as supports.
The wider industry swung back to net inflows of about 1.74 lakh crore rupees in October after a net outflow of about 1.33 lakh crore in September, helped by debt funds, which drew 1,13,438 crore after heavy September outflows. Total industry assets under management rose to 83.39 lakh crore rupees at the end of October from 82.64 lakh crore at the end of September, even as equity assets eased to about 37.14 lakh crore.