MUMBAI: Retail investors putting money into mutual funds are increasingly showing maturity, investing in stocks that are available at lower prices, slowing down their investments in sectors that are showing a sudden spurt, while maintaining a steady pace with regards to systematic investment plans (SIPs).In Oct, they continued to invest in large cap and mid cap schemes, but put in slightly less in small cap funds, data released by AMFI on Wednesday showed. It also showed that gross monthly SIP flows, which are almost entirely by retail investors, stood at Rs 32,160 crore, only slightly off the all-time high figure of Rs 32,490 crore in the previous month.The first half of Oct was tough for Dalal Street, with sensex sliding to a two-year low at the sub-72K level. It was only in the last week of Oct that, boosted by foreign fund buying, the index started rallying.AMFI data also showed that during Oct, net inflows into all equity funds together were Rs 32,994 crore, their 68th consecutive month of net inflows. This was, however, a 14% drop from Rs 38,307 crore in Sept. During the month, the industry’s total assets under management (AUM) also showed a 1.2% uptick to Rs 83.4 lakh crore, from Rs 82.6 lakh crore the previous month.According to Navneet Munot, MD & CEO, HDFC MF, “Net inflows into equity-oriented funds and SIPs continued to remain resilient in Oct, even as markets continued to witness volatility.” Munot pointed out that gross redemptions from equity-oriented funds, at Rs 32,588 crore, were the lowest in recent months. “Indian investors have matured over the years and increasingly treat volatility as part of the investment journey,” he said.Within the equities segment, continued improvement in large cap inflows was an encouraging sign, in particular when valuations have become relatively attractive, suggesting investors are increasingly looking to balance their exposure across market capitalisations, said Saugata Chatterjee, president & deputy CEO, Nippon India MF.“While inflows into small cap and mid cap funds moderated during the month, they continue to remain strong, reflecting sustained investor confidence in Bharat’s long-term economic growth story.”Industry players also pointed out that in Oct, the fund industry as a whole net took in funds worth about Rs 1.7 lakh crore, compared with net outflows of Rs 1.3 lakh crore in Sept. This largely reflected the reversal of quarter-end flows in fixed income, said Hemant Kumar, chief business officer, Tata MF.“In Oct, fixed income (funds) saw inflows of Rs 1.1 lakh crore, following the Rs 1.8 lakh crore outflow in Sept. This is largely the usual quarter-end phenomenon, with institutional liquidity returning in Oct. Overnight and liquid funds accounted for much of this reversal,” Kumar said.
