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Indian investors pour record money into mutual funds despite market dip

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Indian mutual funds hit all-time high with 418 billion rupees inflow last month while foreign investors exit. Local investors remain confident in market despite recent 8% drop from peak

Indian mutual-funds saw mind-blowing growth in oct-23 reaching 418.87 billion rupees (thats about $5 billion) which is 22% more than last month. This happened right when foreign money was moving out of markets

The inflows dont stop coming — its been going strong for almost 4 years now. Hitesh Thakkar from ITI Mutual Fund says people still believe in Indias growth story; they think stocks will give good returns

Strong flows across categories and asset classes were evident in October‚ with equity remaining positive across categories

Anand Vardarajan‚ Tata Asset Management

The market wasnt all sunshine though: both main indexes (NSE Nifty 50 and BSE Sensex) dropped about 6% from their sept peaks. Foreign investors took out $11.2 billion which reminds us of that covid-time panic selling back in 2020

Small and mid-size company funds got more popular:

  • Small-cap funds up 23%
  • Mid-cap funds jumped 50%
  • Theme-based funds got 122.79 billion rupees

Regular investors kept putting money through SIPs (systematic investment plans) hitting new records for 16 months straight — now at 253.23 billion rupees. Local investors seem to like buying when prices drop‚ making up for foreign selling

Lucas Hayes

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