In October, the Sensex, a benchmark index, saw a significant decline of around six percent, resulting in a loss of over 4,900 points.

However, despite this downturn, mutual funds experienced a surge in net inflows. According to data from the Association of Mutual Funds in India (AMFI), mutual funds recorded unprecedented net inflows of approximately Rs 41,000 crore, marking a month-on-month increase of over 21 percent.

Fund managers took advantage of the market dip and invested nearly Rs 89,000 crore during the month, which is a substantial increase from the Rs 30,000 crore invested in September. Shweta Rajani, Head of Mutual Funds at Anand Rathi Wealth, pointed out that while mutual funds received significant net inflows, the higher deployment figure suggests that managers also utilized existing cash reserves within their portfolios to effectively navigate the market fluctuations.