Fund investors in India keep faith in stocks despite market rout

Stock funds took in Rs 111 billion in September, the most since May, up from Rs 83 billion in August, data from the Association of Mutual Funds in India show

Investors in Indian equity funds held tight and even bought more last month, seemingly unfazed by the selloff triggered by a tumbling currency and a crisis at a troubled lender.

Stock funds took in Rs 111 billion ($1.5 billion) in September, the most since May, up from Rs 83 billion in August, data from the Association of Mutual Funds in India show.

Indian equities -- Asia’s top performers until recently -- sank into a correction last week amid a flurry of bad news, from surging oil prices and a slumping rupee to a rout in non-bank lenders following defaults at