Indian investors pour record money into mutual funds despite market dip
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
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
