Equity mutual fund inflows moderate in October; MFs trim holdings in Axis Bank, HCL Tech, Bharti Airtel among others

• Inflows into equity schemes slowed in October with the industry recording an inflow of ₹9,390 crore as against ₹ 14,099 crore in September.
• Meanwhile, debt schemes of mutual funds continued to see an outflow at ₹2,817 crore during the month.
• On the bright side, SIP contribution in October crossed ₹13,000 crore compared to ₹12,976 crore in the previous month.
• Meanwhile, net assets under management (AUM) of the mutual fund industry stood at ₹39.50 lakh crore as on October 31, 2022.

Equity mutual fund inflows slowed down in October – coming in at ₹9,390 crore as against ₹14,099 crore in September, according to AMFI, the regulatory body for the mutual funds sector. Large-cap, smallcap, midcap and thematic funds were the main contributors to the inflows last month.

Meanwhile, debt mutual funds continued to see an outflow – amounting to ₹2,817 crore in October.

On the bright side, SIP contribution in October crossed ₹13,000 crore compared to ₹12,976 crore in the previous month.

In October, mutual funds deployed ₹6,300 crore into the markets and this is in tune with what foreign institutional investors (FIIs) bought for the month – ₹7,600 crore in the Indian secondary market, said a report by Nuvama Institutional Equities (previously known as Edelweiss Institutional Equities).

“Markets continue to react to the global factors and domestic rate hikes. However, mutual fund investors have shown resilience and continue to invest in SIPs, with consistent contribution month on month. There is growth in overall equity AUM (assets under management) and Folios too,” N S Venkatesh, chief executive officer at AMFI said in a statement on November 10.

The stocks that mutual funds bought into for the month include IndusInd Bank and Reliance Industries. The stocks where fund houses trimmed holdings include Axis Bank, Coal India, and HCL Tech among others, as per Nuvama.

Key additions by MFs	Key deductions by MFs
IndusInd Bank	Axis Bank
Reliance Industries	Coal India
Infosys	Bharti Airtel
	HCL Technologies

(Source:Nuvama Institutional Equities)

Meanwhile, net assets under management (AUM) of the mutual fund industry stands at ₹39.50 lakh crore as on October 31, 2022.

Currently, strong FII inflows, especially in November, have boosted the benchmark indices Sensex and the Nifty50 to near their all-time highs of 62,245.43 and 18,600, respectively.

“While the near-term performance of the market is likely to be led by flows, we expect muted returns from the market over the next one year,” said a report by BNP Paribas.

Key additions in Midcap by MFs	Key reductions in Midcap by MFS	Key additions in Smallcap by MFs	Key reductions in Smallcap by MFs
Tata Chemicals	NMDC	RBL Bank	Rites
Zee Entertainment Enterprises	Voltas	Electronics Mart	Welspun Corp
Gland Pharma	Federal Bank	Karur Vysya Bank	Metropolis Healthcare
Delhivery	Indraprastha Gas		Indiabulls Real Estate

(Source:Nuvama Institutional Equities)

SEE ALSO: Rustomjee Group firm Keystone Realtors: 10 key things to know before subscribing to the IPO
Piramal-Bain’s IndiaRF takes majority stake in Social and Smoke House Deli owner Impresario