Sensex and Nifty were up 2.4 percent and 2.3 percent, respectively, in September.
Open-ended equity mutual fund inflows fell 10 percent (MoM) to Rs 34,419 crore in September on slower demand for large-cap funds, data released by the Association of Mutual Funds of India (AMFI), the industry trade body for mutual funds on October 10 showed.
However, inflows into open-ended equity funds stayed in the positive for the 43rd month in a row.
The drop in inflows came despite strong performance by equity markets last month. Sensex and Nifty were up 2.4 percent and 2.3 percent, respectively, in September, biggest monthly rise for the benchmarks since July.
In the equity fund category, large-cap funds saw 33 percent drop in inflows to Rs 1,769 crore. Small-cap funds saw net inflows of Rs 3,071 crore against Rs 3,209.33 in the previous month. Inflows into mid-cap funds also remained stable at Rs 3,130 crore.
Among major gainers in the equity category, multi-cap funds, which invest minimum of 25 percent each in large-cap, mid-cap and small-cap stocks, saw 42 percent jump in net inflows to Rs 3,509 crore.
Meanwhile, sectoral/thematic Funds, which have seen good amount of inflows over the past year, saw 27 percent dip in net investments to Rs 13,255 crore. The AMFI data showed that fund mobilization via new fund offers (NFOs) in the category remained strong at Rs 10,202 during September 2024.
In the fixed-income category, debt mutual funds saw net outflows of Rs 1.14 lakh crore in September. Outflows from the debt fund category were possibly due to the advance tax requirements that corporates need to fulfil, especially with it being the quarter-end.
Equity mutual fund inflows had gained 3.03 percent to Rs 38,239.16 crore in August on heavy demand for small-cap and mid-cap funds.
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Overall, net assets under management (AUM) at the end of September 2024 stood at Rs 67 lakh crore.
(This is a developing story. Check back for more updates)