Equity mutual fund inflows drop 3.56% in January; small, mid, and large-cap funds see gains
Net equity inflows stood at ₹39,669.6 crore in January, down from ₹41,136 crore in December, according to Association of Mutual Funds in India (AMFI) data.
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Small-cap funds saw inflows of ₹5,721 crore, up from ₹4,668 crore in December. Mid-cap funds received ₹5,148 crore, slightly higher than ₹5,093 crore in the previous month. Large-cap fund inflows rose to ₹3,063.3 crore from ₹2,011 crore in December.
Equity Linked Savings Schemes (ELSS) attracted ₹799 crore in January, a sharp increase from ₹188 crore in December. Hybrid fund inflows more than doubled to ₹8,767.5 crore from ₹4,370 crore.
Corporate bond funds saw an outflow of ₹217 crore, lower than the ₹820 crore outflow in December. Dividend yield fund inflows dropped to ₹215 crore from ₹2,777 crore.
Total mutual fund assets under management (AUM) reached ₹67.25 lakh crore in January. New Fund Offer (NFO) inflows fell to ₹4,544 crore from ₹13,852 crore.
Liquid funds witnessed an inflow of ₹91,593 crore, reversing the ₹66,532 crore outflow seen in December. Sectoral fund inflows declined to ₹9,016.6 crore from ₹15,331 crore.
ETF funds saw an outflow of ₹1,172 crore in January, down from ₹4,558.3 crore in December. Credit risk fund outflows stood at ₹294 crore, compared to ₹356 crore in the previous month.
Gold ETFs saw significant inflows of ₹3,751.4 crore in January, up from ₹640 crore in December.
Commenting on the development, Himanshu Srivastava, Associate Director – Manager Research at Morningstar Investment Research India, said that investors used the market correction as an opportunity to build their exposure, highlighting their maturity in handling volatility.
Around 30.7 lakh new folios were added in January.
Mid and small-cap funds continued to attract strong inflows due to their high past returns. However, Srivastava cautioned investors to remain aware of the risks associated with these segments. Large-cap, multi-cap, large and mid-cap, and flexi-cap funds also saw steady inflows.
He further emphasised that equity-oriented mutual funds should be considered as long-term investments rather than short-term bets.