11 equity MF categories attract inflows in September; smallcap funds lead the pack

Equity mutual fund inflows jumped 31% to Rs 38,306 crore in September from Rs 29,328 crore in August, according to monthly data released by the Association of Mutual Funds in India (AMFI). Here is a breakdown of inflows across equity mutual fund sub-categories.

Among the 11 sub-categories, smallcap funds received the highest inflows at Rs 9,038 crore in September, up 13% from Rs 7,973 crore in August. Midcap funds received the second-highest inflows at Rs 7,834 crore, up 12% from the previous month.
“September has been a phenomenal month for the mutual fund industry. The continued expansion in industry folios reflects deeper mutual fund penetration and wider investor participation across Bharat. Sustained inflows into small- and mid-cap funds, even amid market volatility, reflect continued investor confidence and participation in Bharat’s long-term economic growth story,” said Saugata Chatterjee, President and Deputy CEO, Nippon India Mutual Fund.

Flexi-cap mutual funds received inflows of Rs 6,701 crore in September, compared with Rs 5,059 crore in August.
“Flexicap surging to Rs 6,702 crore again points to the fact that investors favour fund manager judgment to navigate these volatile times, given the greater allocation flexibility available to fund managers,” said Nitin Agrawal, CEO, Mutual Funds, InCred Money.

Large-and-mid-cap funds received inflows of Rs 4,271 crore in September, compared with Rs 3,872 crore in August. Multi-cap funds received inflows of Rs 3,859 crore in September.
“Large-and-mid-cap funds received Rs 4,271 crore, while multi-cap funds garnered Rs 3,860 crore, indicating sustained demand for strategies offering diversified participation across market segments,” said Himanshu Srivastava, Principal, Manager Research, Morningstar Investment Research India.

Sectoral and thematic funds received inflows of Rs 1,840 crore and Rs 1,800 crore, respectively, in September.
Srivastava said sectoral funds attracted Rs 1,840 crore in September, compared with net outflows of Rs 53 crore in August. The improvement suggests renewed investor interest in specific sectors, although such flows can be more sensitive to prevailing market trends and investor sentiment.

Focused funds and value funds received inflows of Rs 1,390 crore and Rs 1,290 crore, respectively, in September.

Largecap funds received inflows of Rs 859 crore in September, while dividend-yield funds attracted Rs 179 crore.

ELSS funds and contra funds saw outflows of Rs 662 crore and Rs 97 crore, respectively, in September.