New Delhi, Oct 11 : In September, the equity markets experienced a notable shift towards a risk-off sentiment, following the all-time high of 20,200 points. Despite this shift, equity mutual funds continued to exhibit resilience, recording a significant net inflow of Rs 14,091 crore, a slight dip from the Rs 20,245 crore observed in August, says Akhil Chaturvedi, Chief Business Officer, Motilal Oswal AMC. While the overall net flows experienced a dip in various categories, it is noteworthy that thematic/sectoral funds extended their positive trend into the current month, attracting the highest net inflows. Following closely were smallcap funds and multicap funds. However, small-cap flows did witness a decline month on month, which can be attributed to certain fund houses temporarily halting inflows, possibly due to concerns about rich valuations in the mid and small-cap space, he said. Hybrid funds experienced an uptick in net inflows on a month-on-month basis. This trend reflects the prevalent risk-off sentiment in the market, with investors seeking to diversify their investments while maintaining a focus on capital protection, he added. Kislay Upadhyay, smallcase manager and Founder of FidelFolio Investments, said despite Foreign Portfolio Investors turning pessimistic towards equity for first time in months due to US yield increase and global challenges, equity remains a magnet for inflows, signalling a sustained shift in Indian investors' risk appetite. This move towards aggressive risk allocation is evident in the heavy outflow from debt funds, particularly pure debt funds, while hybrid funds experience a windfall of inflows. Investors are increasingly favouring dynamic asset allocation over traditional pure debt funds. /IANS