Mutual funds market throws a mixed bag in October

The markets have turned volatile in recent months amidst a challenging global environment and the tightening of monetary policy. As a result, retail investors have turned cautious. Net inflows into equity mutual funds dipped in October, the latest data from the Association of Mutual Funds in India released last week showed. The subdued sentiment could be gauged also in new registrations of systematic investment plans (SIP) accounts, which fell around 17% sequentially during the month. However, optimism is still there as monthly contributions into SIPs rose for the third month in a row to ₹13,040.6 crore in October. Meanwhile, data for new folio additions and net inflows suggest a growing risk appetite among investors with a clear shift towards the mid- and small-cap schemes. More on what the latest data shows: