mutual fund investment
There seems to be some change in the inclination of people to invest in mutual funds since last two months. Investors are avoiding investing in funds. We are not saying this but the data itself is telling us this. Inflows into equity mutual funds declined by 9% to Rs 30,421 crore, compared to Rs 33,430 crore in August. Last month, there was a 22% month-on-month decline in investment in equity funds. MF investment has declined for the second consecutive month.
According to AMFI data, investment in mutual funds has decreased in the last two months. There has been a decline in market valuation in investment in equity funds. Large cap, mid cap and small cap have declined by 18%, 4.5%, 12.6%. Meanwhile, investment in flexi cap funds also declined to Rs 7,029 crore, from Rs 7,679 crore last month.
Investment increased in gold ETF
However, in view of the rise in gold prices, there was a huge jump in investment in Gold ETFs and it increased from Rs 2,189 crore to Rs 8,363 crore. Nine new fund launches (NFOs) also took place in September, from which a total of Rs 1,959 crore was raised. These included one sectoral/thematic fund, one hybrid fund and the rest were index funds.
Investment has increased here
Investment increased in most of the 11 mutual fund categories, except dividend yield and ELSS funds. Midcap funds attracted the most attention, with investments worth Rs 5,085 crore in September. After this, Rs 4,362 crore was invested in small cap funds. The least investment of Rs 1,220 crore came in sectoral and thematic funds. Rs 307 crore was withdrawn from ELSS funds and Rs 167 crore was withdrawn from dividend yield funds. If seen month-on-month, investment in multicap, large and midcap, value and focused funds increased. There was an increase of 11% in multicap funds and 14% increase in large and midcap funds. An increase of 85% was seen in value funds and 22% in focused funds. But investment in sectoral and thematic funds fell by 69%.