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Below the Quote on AMFI Report by Palka Arora Chopra, Director at Master Capital Services Ltd.

Net investments into actively managed equity schemes declined 30.4% over the previous month to Rs 14,091.3 crore in Sep. This happened due to the decline in the inflows in the small-cap and mid-cap funds. Small-cap fund inflows in sept dropped to Rs 2,678 cr, Large-cap funds saw outflows of Rs 110cr and mid-cap funds logged inflows of Rs 2,000.9cr in Sep.

We believe the decline has happened because of the high valuations in the market. So investors have pulled out some parts as a profit booking in the market. Meanwhile, the sectors that are overvalued might see less inflows in the upcoming months and will see investors participations more in the undervalued sectors via investments in mutual funds.

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