In October 2024, India’s equity mutual funds (MFs) attracted an unprecedented inflow of ₹41,887 crore, marking a 21% increase compared to September and setting a new record in the market. This surge reflects a strong interest from investors in thematic and sectoral equity funds despite significant market volatility, with major indices like the Sensex and Nifty experiencing a sharp correction of around 5-6%.
This robust inflow marks the 44th consecutive month of net positive inflows into equity-oriented schemes, underlining the sustained appeal of equity MFs among Indian investors. Thematic and sectoral funds led the charge, securing the highest share of inflows, with sectoral funds alone capturing ₹12,279 crore. Analysts attribute this resilience to the growing confidence among retail investors, who continue to see mutual funds as a reliable investment avenue for capitalizing on long-term growth opportunities, even amid short-term market fluctuations.
October’s inflow trends also stand out due to broader investment momentum within the mutual fund industry. Total inflows across various MF schemes hit ₹2.4 lakh crore, a strong recovery from the ₹71,114 crore outflow in September. A significant portion of this came from debt schemes, which drew ₹1.57 lakh crore, indicating a renewed interest in diversified investment channels within the MF space.
This record-breaking influx demonstrates the investor shift toward mutual funds as part of a diversified strategy, balancing equities with debt in response to evolving market conditions. As the Indian mutual fund landscape continues to attract robust participation, it reflects the broader trend of retail investors leaning into structured funds for stable growth and resilience amid economic uncertainty.
