Despite October being a festive month, mutual fund flows remained relatively steady, reflecting sustained investor confidence in diversified investment strategies, said Vaibhavv Chugh, CEO, Abakkus Mutual Fund.“The MF flows, keeping in mind October being the month of festivals, can be inferred to be relatively decent. 

The importance of asset allocation being constantly emphasized by advisors and the industry during contemporary times of geopolitical uncertainty and lackluster equity performance since September 2024 has ushered investors’ preference for hybrid investments,” Chugh said.

He added that the temporary dip in flows should be viewed as a seasonal phenomenon, as festive spending often takes precedence over investments.“Ambiguities around the tariff discussion outcome may also have compelled investors to defer short-term decisions. However, with India’s robust growth outlook, strong macroeconomic fundamentals, and continued government-driven consumption impetus through tax cuts, the environment remains favorable for higher equity allocations,” Chugh noted.