Mutual funds posted net outflows of around ₹3,200 crore in October as investors shifted capital defensively amid global uncertainty. However healthcare and technology thematic funds still delivered returns up to five percent, demonstrating continued selective conviction in forward secular narratives. Industry analysts flagged that this bifurcation between broad AUM withdrawal and thematic performance confirms that the investor pattern cycle is migrating toward narrower conviction concentration rather than wide passive spread allocation. Fund managers said portfolio resilience will depend on tactical rotation control through stress-sensitive sectors.