Mutual fund trends: Net equity inflows drop 19% to Rs 24,690 crore in October; SIPs, gold ETFs continue to shine

Net inflows into mutual fund equity schemes slipped nearly 19% month-on-month to Rs 24,690 crore in October, marking the third consecutive monthly decline even as retail SIP investments and gold ETFs remained resilient, data from the Association of Mutual Funds in India (Amfi) showed on Tuesday.Amfi attributed the decline in equity inflows largely to profit-booking and higher redemptions amid market rallies, with investors choosing to cash out part of their gains. “There is no clear pattern in investor interest,” said Amfi Chief Executive V N Chalasani, noting that redemptions rose to Rs 38,920 crore in October, compared with Rs 35,982 crore in September, PTI quoted.Overall mobilisation under equity schemes also eased to Rs 63,611 crore from Rs 66,404 crore a month earlier. Still, the total assets under management (AUM) for equity funds rose to Rs 35.16 lakh crore at the end of October, up from Rs 33.68 lakh crore in September, reflecting market gains and steady SIP flows.SIPs hold steady, debt funds see reboundSystematic Investment Plan (SIP) inflows continued to show strong retail participation, standing at Rs 29,529 crore, marginally lower than September’s record Rs 29,631 crore. The number of active SIP accounts rose to 9.45 crore, while overall SIP AUM climbed to Rs 16.25 lakh crore, contributing over a fifth of the mutual fund industry’s total assets.Debt-oriented schemes saw a sharp turnaround, attracting Rs 1.59 lakh crore in net inflows in October against Rs 1.01 lakh crore of outflows in September — a typical pattern seen at the start of a new quarter, Chalasani said.The overall MF industry AUM expanded by over 5% to reach Rs 79.88 lakh crore, buoyed by debt fund inflows.Gold and silver ETFs attract investorsInvestors continued to show confidence in gold-backed funds amid the rally in bullion prices. Gold ETFs recorded inflows of Rs 7,743 crore during October, taking total assets in the category above Rs 1.02 lakh crore, despite a slight dip from September’s Rs 8,363 crore.“Gold’s rise in spot prices and its appeal as a safe-haven asset are driving investor interest,” Chalasani said. Silver ETFs also drew over Rs 3,000 crore, with category AUM now crossing Rs 42,000 crore, he added.New product launches and innovation aheadOctober saw the launch of 18 new MF schemes, which together mobilised Rs 6,062 crore, compared with Rs 1,959 crore raised through nine schemes in September. Fund houses are also developing new commodity ETF offerings, expected within the next four months, Chalasani said.Meanwhile, the new Specialised Investment Funds (SIFs) — designed for sophisticated investors with a minimum investment of Rs 10 lakh — saw four new strategies launched, raising Rs 2,007 crore in October. The overall SIF AUM now stands at Rs 2,010 crore, with over 10,200 folios.Chalasani also said Amfi is working to resolve technical issues delaying the reporting of micro SIPs, with regular updates expected from January 2026.