Perspective on AMFI data by Karthick Jonagadla, investment manager on smallcase and Founder and CEO of Quantace Research
Below the Perspective on AMFI data by Karthick Jonagadla, investment manager on smallcase and Founder and CEO of Quantace Research
Rotation to core: Mid/Small still bid as liquid funds drain in tax cycle
September AMFI prints show equity net inflows moderating to Rs.30,422 crore (second straight dip), even as retail discipline tightened—SIP collections hit a fresh Rs.29,361 crore record. Category mix matters: mid- and small-cap funds again led (Rs.5,085 crore/Rs.4,363 crore) while large-cap gathered Rs.2,319 crore; sectoral/thematic slowed to ~Rs.1,221 crore as core diversified sleeves—especially flexi-cap (Rs.7,029 crore)—absorbed flows, signalling rotation from narrow themes to broader beta.
Debt told a seasonal story: net outflows of ~Rs.1.01 lakh crore were dominated by liquid redemptions (Rs.66,042 crore), with cash parking migrating to overnight funds (Rs.4,279 crore); system liquidity flipped to deficit around Sept 22 on tax outflows—typically normalising early October. The month settled at a modest net outflow of Rs.43,146 crore.
Meanwhile, gold ETFs drew record demand (~$902 million), lifting India gold-ETF AUM past $10 billion—an inexpensive portfolio hedge as equities consolidate.
Overall View: Stay invested, tilt to diversified equity while keeping measured exposure to quality mid/small; park near-term cash in overnight/ultra-short; maintain a 5–10% gold allocation as ballast.
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