Debt mutual funds saw net inflows of ₹1,13,438 crore in October (September: outflows of ₹1,83,156 crore), as the quarter-end outflows reversed seasonally with the start of a new quarter. Liquid funds (₹70,534 crore) and overnight funds (₹54,893 crore) drove the reversal, with money market funds adding ₹1,502 crore. Ultra-short (₹1,879 crore) and low-duration (₹3,582 crore) funds still saw outflows. Duration categories also continued to see outflows, led by corporate bond (₹3,143 crore), short duration (₹2,093 crore) and banking & PSU debt (₹1,238 crore) funds, as higher crude oil prices, RBI rate hike and tightness in liquidity after the FCNR(B) inflows ebbed pushed domestic yields higher across the curve.

Equity net inflows stood at ₹32,994 crore in October (September: record ₹38,307 crore). Large & mid-cap funds led with inflows of ₹8,484 crore, nearly double September’s ₹4,271 crore, followed by small-cap (₹6,408 crore), flexi-cap (₹4,980 crore), mid-cap (₹4,893 crore) and multi-cap (₹2,978 crore) funds. Large-cap funds saw inflows of ₹1,032 crore (September: ₹859 crore). Large cap category outperformance during the month drew higher allocations to large cap and large and mid-cap funds compared to recent months.

Hybrid funds saw net inflows of ₹3,514 crore (September: outflows of ₹457 crore), as arbitrage funds swung to inflows of ₹3,929 crore after quarter-end redemptions. Multi-asset allocation funds (₹1,515 crore) and aggressive hybrid funds (₹355 crore) continued to see inflows, though lower than September. Balanced advantage funds (₹853 crore) and equity savings funds (₹1,133 crore) saw outflows. In passives, equity ETFs drew ₹12,974 crore, Silver ETFs rose to ₹3,092 crore, and Gold ETFs moderated to ₹3,474 crore. Industry AUM stood at ₹83.39 lakh crore, up from ₹82.64 lakh crore in September.

Neeraj Jain, Fund Manager – Fixed Income, The Wealth Company Mutual Fund