New Delhi [India], October 14 (ANI): Systematic Investment Plan (SIP) contributions are expected to remain the key driver of equity mutual fund inflows, with investors likely to favour mid-cap, small-cap and multi-asset strategies, however, valuation concerns may keep overall equity inflows range-bound, according to a report by Capital 360 One.
As per the report, SIP flows reached an all-time high of Rs 324.90 billion in September. Additionally, the equity-oriented schemes recorded net inflows of Rs 383 billion with large-cap funds witnessing a revival after two consecutive months of outflows.
“The headline equity inflows improved along with the continued strength in SIP contributions suggest that retail investors remain constructive on the equity market outlook and are willing to take selective risks,” it said.
On the other hand, hybrid schemes, excluding arbitrage funds, attracted net inflows of Rs 35 billion, although lower than the previous month.
“Overall net flows in Equity oriented schemes (i.e. equity schemes and hybrid schemes excluding arbitrage) were at Rs 418 bn (versus Rs 356 bn in the previous month),” it noted adding large-cap funds attracted investments, “likely due to market corrections.”
The report further highlighted, debt and liquid fund categories witnessed outflows, while equity, gold and silver ETFs recorded higher inflows compared to the previous month.
“Gold ETFs saw a net inflow of Rs 45 bn (up 71% MoM) versus Rs 26 bn in the prior month, silver ETF increased to Rs 20 bn (up 55% MoM) from Rs 13 bn in the prior month and equity ETF recorded Rs 100 bn (up 38% MoM) versus Rs 72 bn in August 2026, while other ETFs were largely stable.”
AUM on the other hand dipped 5 per cent month-on-month (MoM), standing at Rs 82.6 lakh crore from Rs 87.09 lakh crore in the prior month.
“Going forward, we expect SIP flows to remain the key anchor for equity inflows, while incremental allocations could continue to favour Mid Cap, Small Cap and multi-asset strategies. Although equity net inflows may remain range-bound amid valuation considerations, the steady rise in AUM reinforces the structural growth trajectory of the industry.” it said. (ANI)
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