The Indian mutual fund industry displayed remarkable resilience in October 2024, even amidst ongoing market volatility. Although domestic equity funds witnessed a 3.6% month-on-month (MoM) decline in assets under management (AUM), dropping to US$ 387.32 billion (Rs. 32,60,000 crore), largely due to a 6.2% fall in the Nifty index, the industry’s overall performance was strong, with a record US$ 5.92 billion (Rs. 49,800 crore) in net equity inflows. This marks a 37% increase compared to September 2024, which had seen US$ 4.33 billion (Rs. 36,400 crore) in inflows.

A key driver of this positive performance was the Systematic Investment Plan (SIP), which reached a historic high of US$ 3.01 billion (Rs. 25,320 crore) in inflows. This reflects a 49.6% year-on-year (YoY) growth, underscoring the growing popularity of SIPs as a tool for long-term wealth creation. Despite market corrections, SIPs remained a steadfast contributor to the industry, indicating sustained investor confidence and commitment to equity-based investments.

While the market indices showed a decline, equity schemes saw a 3.5% MoM rise in sales, totaling US$ 10.33 billion (Rs. 86,800 crore). This surge in sales highlights the continued appetite for equity-based investments, even amid market corrections. Notably, redemptions in the month slowed by 22.1% MoM, suggesting a calmer investor sentiment and a shift towards long-term perspectives despite short-term market fluctuations.

In terms of sector allocations, Private & PSU Banks, Capital Goods, Healthcare, Technology, and Cement sectors saw increased exposure. The Private Banks sector, in particular, led the equity allocations, rising to 16.8%, driven by the strong performance of ICICI Bank, State Bank of India, and HDFC Bank. Technology and Capital Goods also saw notable increases in fund allocations, while sectors such as Oil & Gas, Consumer Durables, Automobiles, Non-Banking Financial Companies (NBFCs), and Retail experienced reduced allocations. Oil & Gas, in particular, continued its underperformance, reaching an 11-month low.

Overall, despite the short-term market challenges, the Indian mutual fund industry is showing a resilient growth trajectory, with strong equity inflows, a sustained interest in SIPs, and a shifting sector focus that reflects both market trends and investor sentiment. This positive momentum signals confidence in the long-term outlook of the Indian equity market and its role as a primary vehicle for wealth creation.

The Upcoming IPOs in this week and coming weeks are NTPC Green, Lomosaic India, C2C Advanced System, Rajesh Power Services, Rosmerta Digital, Avanse Financial and Nisus Finance.

The Current active IPO are Zinka Logistics Solution (Black Buck), and Onyx Biotec.

For more insights into financial trends , visit our Top News Headlines. You can also explore investment opportunities in the market and apply for upcoming IPOs through our Best IPO to Apply Now section.