In September 2024, the mutual fund landscape reflected a mixed trend according to data released by the Association of Mutual Funds in India (AMFI). Net equity inflows for the month were recorded at ₹34,393 crore, which represents a 10% decline from ₹38,212.4 crore in August. Despite this drop, equity mutual funds continued their streak of positive inflows, marking the 43rd consecutive month of inflows, demonstrating investor resilience and confidence in equity markets.

Breaking down the equity funds further, large-cap funds attracted ₹1,769 crore, which was a noticeable decrease from ₹2,636 crore in August. Conversely, small-cap funds attracted inflows of ₹3,071 crore, slightly down from ₹3,209.3 crore the previous month. Interestingly, mid-cap funds experienced a modest uptick, securing ₹3,130 crore in inflows compared to ₹3,054.7 crore in August. However, it’s worth noting that Equity Linked Savings Scheme (ELSS) funds faced an outflow of ₹349 crore in September, worsening from the ₹205.2 crore outflow recorded in August.

On the debt mutual funds side, the scenario was starkly different, with a substantial outflow of ₹1,13,833.95 crore. Liquid funds, in particular, saw a sharp reversal, suffering a staggering ₹72,666 crore outflow, compared to a positive inflow of ₹13,594.9 crore in August. Meanwhile, hybrid funds registered inflows of ₹4,901 crore, down from ₹10,005.3 crore in the previous month. The exchange-traded funds (ETFs) also saw a significant decline, with inflows dropping to ₹381 crore from ₹10,093.6 crore in August.

In a positive light, credit risk funds experienced a turnaround, reporting an inflow of ₹484 crore in September, a commendable recovery from a ₹390.4 crore outflow in August. This indicates that while some segments of the mutual fund industry are facing challenges, others are adapting and attracting investment.

Venkat Chalasani, Chief Executive of AMFI, commented on the trends, stating that the inflow of investments underscores the growing trust and confidence in mutual funds. He highlighted that the asset base reached ₹67.09 lakh crore at the end of September, alongside achieving a milestone of 5 crore unique investors. This indicates a positive trend towards financial awareness in India.

Additionally, the growing contributions from systematic investment plans (SIPs), which hit ₹24,508 crore in September, suggest a shift towards more disciplined and long-term investment strategies among investors. This underscores a critical development in how investors are approaching their portfolios and aligning their investments with future goals.

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This comprehensive overview of mutual fund trends not only highlights key figures but also paints a broader picture of the investment landscape in India as we move further into 2024. Investors are encouraged to stay informed and consider various options to maximize their returns, whether through equity or debt instruments. By understanding these trends, investors can make better decisions that align with their financial goals.

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