Research preview

September saw equity mutual‑fund net inflows rise to a five‑month high of 38,307 crore rupees, the strongest level since April 2026. Such a surge signals a shift in investor sentiment and capital allocation that can materially affect market dynamics, liquidity, and the risk‑return profile of equity portfolios. Quantitative traders can translate these macro‑fund flow signals into systematic edges by linking them to asset‑class behavior, volatility regimes, and cross‑sectional returns. Flow‑Driven Liquidity and Price Impact When large pools of capital pour into equity mutual funds, the funds must purchase securities to meet their allocation targets....