Equity mutual fund inflow hits 5-month low in October

INSUBCONTINENT EXCLUSIVE:
New Delhi: Equity mutual funds witnessed a net inflow of Rs 6,015 crore in October, the lowest in the last five months, amid rally in stock
market following a series of reform measures taken by the government. According to data by the Association of Mutual Funds in India (Amfi),
open-ended equity schemes witnessed an infusion of Rs 6,026 crore, while there was a small outflow of Rs 11 crore from close-ended equity
plans, translating into a net inflow of Rs 6,015 crore in October. In comparison, net inflows in equity and equity-linked saving schemes
stood at Rs 6,489 crore in September. Such inflows stood at Rs 9,090 crore in August, Rs 8,092 crore in July, Rs 7,585 crore in June and Rs
4,968 crore in May. "Net inflows continue to pour into the equity-oriented mutual fund schemes tracking the surge in the domestic markets
Through the month of October, the category received a net inflow of Rs 6,026 crore
Though slightly lower than the net inflow of Rs 6,609 crore in the month of September." "The positive inflow indicate building up of a
positive investment trend
Series of steps taken by the government in the recent times to boost domestic economy had improved sentiments and helped the markets to
surge
This has helped investors slowly gain confidence and get back to investing," said Himanshu Srivastava, senior analyst manager research,
Morningstar Investment Adviser India. Going ahead, experts believe that equity markets would perform better in the coming months due to
positive initiatives taken by the government, which will drive further inflows in mutual funds. Despite the decline in inflows, the asset
base of equity mutual funds increased to Rs 7.9 lakh crore in October from Rs 7.6 lakh crore in the preceding month. Meanwhile, BSE
benchmark Sensex had gained nearly 4 per cent in October.