Equity mutual fund inflows dip 14% in October amid market volatility

Equity mutual funds witnessed a significant slowdown in October, with net inflows falling 14 per cent to ₹32,994 crore as market volatility and profit-booking pressures dampened investor appetite for equities. The decline reflects a broader cooling in mid-cap and small-cap investments, segments that had previously attracted substantial capital inflows.

Systematic investment plan (SIP) contributions, a barometer of retail investor confidence, also declined marginally to ₹32,160 crore during the month. The softening in SIP collections underscores growing caution among individual investors navigating heightened market uncertainty.

The moderation in equity fund flows comes as investors reassess their portfolio positioning following strong inflows in preceding months. Market participants attributed the pullback to a combination of elevated valuations in mid and small-cap segments and increased volatility in broader market indices.

Analysts suggest that the October trend may signal a temporary pause rather than a structural shift in investor sentiment. However, sustained monitoring of inflow patterns in coming months will be critical to gauge whether the current caution reflects seasonal profit-booking or a more persistent change in investor behaviour.