Equity MF saw a net outflow in the month of October (Rs. 2725 cr), for the fourth consecutive month, as investors preferred to continue booking profit. The sharp V-shaped recovery during last few months and change in the definition of multi-cap funds by SEBI are likely reason for outflow from the equity mutual funds.
Most of the equity mutual fund categories witnessed redemption during the month of October 2020, except three categories – Focused and Large & Mid Cap. Also, we can derive some concerns from the quantum of decline which was higher as against the outflow trends seen during previous month.