Net equity flows in MF schemes drop 19% to `24,690 cr in Oct

Net inflows into mutual funds’ equity schemes dropped by nearly 19 per cent to Rs 24,690 crore in October, making it the third consecutive month of a decline in the number, an industry body said on Tuesday.

On the systematic investment plans (SIPs), the preferred vehicle of retail investors, the overall inflows grew to Rs 29,529 crore from September’s record high of Rs 29,631 crore. Amid the rally in gold prices, gold exchange traded funds saw net inflows at Rs 7,743 crore during the month taking the overall assets under management (AUM) in the category to above Rs 1 lakh crore, as per data disclosed by the Association of Mutual Funds of India (Amfi).

The net flows into equity MFs had declined 9 per cent on-month to Rs 30,421 crore in September, after August’s 22 per cent decline to Rs 33,430 crore, amid corrections in the equity benchmarks. Speaking to reporters on Tuesday, Amfi’s chief executive V N Chalasani asserted that there is no pattern in the investor interest and attributed the fall to higher redemptions because of the profit-booking amid surge in markets. The overall redemptions stood at Rs 38,920 crore in October as against Rs 35,982 crore in September.