Continued inflow in equity schemes and subdued market sentiments pushed the equity funds' AUM to hit another record of Rs6.59 trillion. For the September month, the net inflows in equity schemes stood at Rs18,936 crore which was tad lower in comparison to the earlier month which recorded inflows totaling at Rs. 20,362 crore.

The equity schemes also witnessed profit-booking during this time while registering inflows. Nonetheless, there was a heavy redemption of income schemes that totalled to Rs50,090 crore in the month ending September, the highest recorded outflow since March. This pulled the total AUM of the mutual fund industry lower to Rs20.4 trillion.

FIIs also offloaded heavily to the tunes of Rs11,836.18 from Indian equities mainly due to high valuations and uncertain earnings outlook. Instead they are now known to make increasing allocations in other emerging markets namely Brazil and Mexico.

"All eyes are now on the earnings season, and investors hope they are not worse than June quarter numbers. The commentary along with the earnings will be keenly watched for the path ahead, said CIO of an asset management company.

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