While AMFI reported total equity inflows of ₹32,200 crore (excluding arbitrage) for the month, JM Financial attributed the decline to higher redemptions and cautious lump-sum investments amid elevated valuations.
Gross equity sales fell 6% month-on-month (MoM), while redemptions rose 8%, the brokerage said.
The note highlighted that inflows were supported by new fund offerings (NFOs) amounting to ₹4,200 crore, led by launches such as the Jio BlackRock Flexi Cap Fund and consumption-focused thematic funds. However, it added that the NFO pipeline for November appears weaker, suggesting that incremental inflows may remain subdued in the near term.
Segment-wise, small- and mid-cap funds saw notable moderation, while large-cap funds halved their inflows.
Thematic and sectoral funds showed relative resilience, reflecting selective investor appetite.
Despite softer inflows, total industry assets under management (AUM) rose to a record ₹79.9 lakh crore, up 5.6% MoM, largely due to valuation gains.
JM Financial estimated that around three-fourths of the equity AUM increase came from market appreciation rather than fresh inflows.
SIP contributions remained stable at ₹29,500 crore, supported by a steady rise in active accounts, indicating continued retail participation through systematic routes. On the fixed-income side, debt funds saw renewed inflows, reversing outflows from September, while liquid funds recorded ₹1.31 lakh crore in inflows after the previous month’s withdrawals.
JM Financial said overall retail participation remains strong, though lump-sum equity investments are showing signs of caution. Among asset managers, it pointed to Nippon Life India Asset Management as continuing to gain share and trade at relatively attractive valuations.
