Equity MF inflows decline in Sept

New Delhi: In September, the equity markets experienced a notable shift towards a risk-off sentiment, following the all-time high of 20,200 points. Despite this shift, equity mutual funds continued to exhibit resilience, recording a significant net inflow of Rs14,091 crore, a slight dip from the Rs20,245 crore observed in August, says Akhil Chaturvedi, Chief Business Officer, Motilal Oswal AMC.

While the overall net flows experienced a dip in various categories, it is noteworthy that thematic/sectoral funds extended their positive trend into the current month, attracting the highest net inflows. Following closely were small-cap funds and multi-cap funds. However, small-cap flows did witness a decline month on month, which can be attributed to certain fund houses temporarily halting inflows, possibly due to concerns about rich valuations in the mid and small-cap space, he said.

Hybrid funds experienced an uptick in net inflows on a month-on-month basis. This trend reflects the prevalent risk-off sentiment in the market, with investors seeking to diversify their investments while maintaining a focus on capital protection, he added.