Inflows into equity mutual funds hit ₹21,781 crore in January 2024; top 6 highlights
Inflows into open-ended equity funds increased by 28 percent to ₹21,780.56 crore in January, marking the 35th consecutive month of positive inflows.
According to data released by the Association of Mutual Funds of India (AMFI), inflows into open-ended equity funds surged by 28% to reach ₹21,780.56 crore in January. This marks the 35th consecutive month of positive inflows into equity funds, starting from March 2021.
Furthermore, total systematic investment plan (SIP) assets under management (AUM) surpassed ₹10 trillion, reaching ₹10.27 trillion in January. Additionally, 28 lakh SIP accounts were added during the month.
Investments through SIPs reached a new record high of ₹18,838 crore last month, compared to ₹17,610 crore in December.
Delving into specific categories
Small cap funds received an inflow of ₹3,257 crore in January, a marginal decline from ₹3,857 crore in December 2023. Large cap funds saw an inflow of approximately ₹1,287.05 crore, contrasting with an outflow of ₹280.94 crore in December. On the other hand, mid cap funds witnessed increased investor interest with an inflow of ₹2,061 crore, up from ₹1,393 crore in December.
Melvyn Santarita, Analyst, Morningstar Investment Research India Private Limited, says, “Both the midcap and the small cap indexes have seen a sharp rally over the last 6 months and 1 year. Investors should note that while both the midcap and the small cap categories have the potential to deliver good returns, these categories inherently are volatile with sharp drawdown risks. Investors should have a long-term time horizon while investing in these categories. Opting to invest in these categories via the SIP route is a good way by which investors can ride the volatility whilst dollar cost averaging over long periods.”
Credit risk funds experienced an outflow of ₹303 crore, down from ₹368 crore in December 2023. In contrast, Exchange-Traded Funds (ETFs) saw a significant increase in inflows, reaching ₹571 crore in January compared to ₹200 crore in December 2023, indicating strong investor interest in ETFs at the beginning of 2024.
Liquid funds, which are typically considered safer investments, recorded an inflow of ₹49,468 crore in January, rebounding from the outflow of ₹39,675 crore in the previous month.
In the hybrid category, multi-asset allocation funds saw notable inflows of ₹7,079 crore, a significant increase from ₹2,420 crore in the previous month.
New Fund Offers (NFOs) continued to attract investor attention, raising ₹6,817 crore in January and total debt scheme inflows reached ₹76,469 crore, indicating a positive shift from the outflow of ₹75,560 crore in December 2023.
Looking at specific sectors, dividend yield funds experienced an inflow of ₹382 crore in January, compared to ₹279 crore in December 2023. Equity-Linked Savings Schemes (ELSS) also saw a substantial turnaround with an inflow of ₹532 crore, contrasting with an outflow of ₹314 crore in the preceding month.
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Business NewsMutual FundsInflows into equity mutual funds hit ₹21,781 crore in January 2024; top 6 highlights
First Published:8 Feb 2024, 01:50 PM IST
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