Even though the Indian stock markets had a sharp drop in October 2024, investors continued to show a lot of interest in mutual funds and other equity-linked schemes, especially via systematic investment plans (SIPs).
According to a Motilal Oswal study, inflows into mutual funds and SIPs hit a record Rs 253.2 billion for the month, up 3.3% from the previous month and a noteworthy 49.6% rise from October 2023.

Despite brief market swings, this rise demonstrates individual investors’ ongoing faith in long-term, disciplined investing.

According to the study, investors kept putting their money into mutual funds, with inflows into systematic investment plans (SIPs) hitting a record high of Rs 253.2 billion on October 24 (up 49.6% YoY and 3.3% MoM).

In October, however, there was a little drop in the mutual fund industry’s share of the equities market. In comparison to the previous month, the assets under management (AUM) of equities funds decreased by Rs 1,234 billion, while other exchange-traded funds (ETFs) suffered a decrease of Rs 274 billion.

The analysis said “Conversely, AUM of equity funds declined by Rs 1,234 b and other ETFs by Rs 274 b MoM” .

The mutual fund industry’s overall assets under management (AUM) increased by 0.2% month over month to Rs 67.3 trillion, notwithstanding significant losses in certain categories.

Increases in AUM in income funds (up Rs 495 billion) and liquid funds (up Rs 1,138 billion) helped to sustain this development.

The research also noted significant changes in the October mutual fund investment distribution by sector. Investments increased in the cement, capital goods, healthcare, technology, and banking (both public and private).

In the meanwhile, there were decreases in investments in the metals, retail, communications, utilities, consumer durables, cars, non-banking financial firms (NBFCs), and oil and gas industries.

Net stock inflows also reached a new high during the month, rising to Rs 498 billion, a 75% rise over the 2024 year-to-date period. This increase demonstrates the optimistic attitude of investors, who are probably seeing growth prospects in spite of recent market falls.

The positive view among mutual fund investors was further supported by the fact that redemptions fell sharply in October, falling by 22.1% from the previous month.

robust interest in liquid and income funds despite equities market volatility is driving record SIP inflows, all-time high net equity inflows, and a continuous increase in AUM, according to October data, which shows robust investor confidence in India’s mutual fund sector.