(Reuters) - Inflows into India's equity mutual funds jumped to a record high of 418.87 billion rupees (about $5 billion) in October, rising 22% from the previous month, and partly offsetting hefty foreign outflows.
Inflows into equity mutual funds continued for the 44th month in a row in October, the longest on record, with large-cap mutual funds garnering twice the inflows compared to the previous month, data released by Association of Mutual Funds in India (AMFI) on Monday showed.
Indian equity markets have fallen about 8% from the record peaks in late September amid rising outflows and concerns over corporate earnings.
The benchmark NSE Nifty 50 and BSE Sensex lost about 6% each last month as overseas investors pulled out $11.2 billion from stocks.
However, investors are positive on Indian economy and that the equity market will deliver a reasonably good return going forward, Hitesh Thakkar, acting chief executive of ITI Mutual Fund, said.
The previous record monthly foreign outflow in March 2020 in the aftermath of the Covid-19 pandemic had triggered a 23.25% drop in the benchmark indexes.
In October, inflows into India's small- and mid-cap mutual funds rose 23% and 50%, respectively, from a month earlier.
The small- and mid-cap indexes lost 3% and 6.7%, respectively, in October.
Thematic and sectoral funds, which saw a 7% sequential drop in inflows to 122.79 billion rupees, were still the biggest contributors to overall flows in October.
Contributions to systematic investment plans, where investors make regular payments into mutual funds, rose to 253.23 billion rupees, the 16th consecutive record peak.
($1 = 84.3550 Indian rupees)
(Reporting by Bharath Rajeswaran in Bengaluru; Editing by Mrigank Dhaniwala)
By Bharath Rajeswaran