Equity Mutual Fund Inflows in India Steady at ₹39,688 Crore for January: AMFI
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Synopsis
Equity mutual funds in India maintained strong net inflows of ₹39,688 crore in January, despite a weak stock market. This marks the 47th consecutive month of inflows, with notable performances in small-cap and large-cap funds. Meanwhile, debt mutual funds reversed their decline with significant inflows.
Key Takeaways
- Equity mutual funds saw inflows of ₹39,687.78 crore in January.
- This represents the 47th consecutive month of positive inflows.
- Small-cap and large-cap funds experienced significant growth.
- Debt mutual funds recorded a major turnaround with ₹1,28,652.58 crore in inflows.
- Sectoral and thematic funds faced a sharp decline in investments.
Mumbai, February 12 (NationPress) Equity mutual funds (MFs) recorded net inflows amounting to ₹39,687.78 crore in January, despite the ongoing decline in the domestic stock market, as per data released by the Association of Mutual Funds in India (AMFI) on Wednesday.
This follows a robust 14.5 percent increase in inflows in December, which reached ₹41,155.91 crore.
Even with this slight decrease, inflows into open-ended equity funds have remained positive for an impressive 47 consecutive months.
The reduction in inflows coincided with a sluggish stock market, where the BSE Sensex experienced a drop of 1.28 percent and the Nifty fell by 0.99 percent during January.
“Domestic investors have sustained their investment momentum in equity-oriented mutual funds throughout January, viewing market corrections as a chance to enhance their exposure. This marks the 47th month of net inflows in this segment,” stated Himanshu Srivastava from Morningstar Investment Research India.
He further noted the encouraging trend of investors utilizing mutual funds as a pathway into equity markets, given the clear advantages they provide.
Among various equity fund types, small-cap funds experienced significant inflows, rising by 22.6 percent to ₹5,720.87 crore.
Mid-cap funds also saw a slight rise, attracting ₹5,147.87 crore in investments.
Large-cap funds enjoyed a remarkable surge, with inflows escalating by 52.3 percent to ₹3,063.33 crore.
Conversely, sectoral and thematic funds faced a sharp decline, plummeting by 41.2 percent to ₹9,016.60 crore.
This downturn was primarily attributed to a reduced number of new fund offers during the month. In January, mutual funds garnered ₹2,838 crore through just three sectoral/thematic funds.
In contrast, debt mutual funds experienced a remarkable recovery, showing net inflows of ₹1,28,652.58 crore in January, a stark recovery from the substantial outflows of ₹1,27,152.63 crore recorded in December.
The liquid fund category led the way with inflows of ₹91,592.92 crore, followed by money market funds, which attracted ₹21,915.53 crore.
However, short-duration funds and gilt funds saw outflows of ₹2,066.19 crore and ₹1,359.66 crore, respectively.
In total, open-ended mutual funds registered net inflows of ₹1,87,606.23 crore in January, a significant contrast to the net outflows of ₹80,509.20 crore recorded in December.
