InvestorQ : How did you read the mutual fund flows data for the month of October 2022?
ishika Banerjee made post

How did you read the mutual fund flows data for the month of October 2022?

1 week ago

Here are 5 important trends I read from the mutual funds data for October 2022.

1) Systematic investment plan (SIP) flows in October 2022 touched an all-time high level of Rs13,041 crore. Even NFOs touched Rs5,439 crore in October. NFO inflows were dominated by sectoral funds and index funds.

2) For the month of October 2022, the active debt funds saw net outflows of Rs2,818 crore. Rising rates and bond yields are still a worry, but the previous month’s treasury pressure has abated so the outflows were quite thin. Liquid funds had inflows of Rs19,085 crore.

3) Active equity funds saw net inflows of Rs9,390 crore in October 2022. The segments of equity fund that led the flows included sector funds at Rs2,686 crore, small cap funds at Rs1,582 crore and mid cap funds at Rs1,385 crore, as investors looked for opportunities.

4) In the Hybrid funds category, net outflows were to the tune of Rs2,819 crore in October 2022. Interestingly, the balanced advantage funds (BAFs) saw net outflows of Rs454 crore; the first net outflow in more than 2 years. Arbitrage funds saw outflows of Rs2,470 crore in October 2022 as the treasury pressure continued.

Passive funds continue to see a shift in their favour. It got the best category level inflow of Rs10,261 crore in October 2022. While index funds got net inflows to the tune of Rs5,076 crore the low cost equity & debt index ETFs saw inflows of Rs4,845 crore.