Equity mutual fund inflows marginally declined by 3.6% over the last month to Rs 39,687.78 crore in January, data released by the Association of Mutual Funds of India (AMFI) on February 12 showed.
Equity mutual fund inflows marginally declined by 3.6% over the last month to Rs 39,687.78 crore in January, data released by the Association of Mutual Funds of India (AMFI) on February 12 showed.
The monthly inflows through systematic investment plan (SIP) stayed above the Rs 26,000 crore level in January. The SIP contribution during the month stood at Rs 26,400 crore compared to Rs 26,459 crore in December, a minor dip of just 0.2%.
The fall is witnessed primarily in case of flexi caps and large caps. Contribution to flexi cap equity funds dropped to Rs 4,730 crore in January from Rs 5,697 crore in December. Contribution to large cap funds slipped to Rs 2,010 crore in January from Rs 3,063 crore in December.
All equity-oriented categories received net inflows during January 2025.
Retail asset under management (AUM) including equity, hybrid and solution oriented schemes stood at Rs 38,77,595 crore for January 2025 against an AUM of Rs 39,91,313 crore in December 2024.
“The industry has eliminated approximately 25 lakh SIP accounts after a reconciliation between the RTAs and exchanges. This has resulted in the number of SIP outstanding accounts falling for the first time recent years to 10.27 crore last month against 10.32 crore in December,” said Venkat Chalasani, Chief Executive, AMFI.
In equity fund category, inflows into smallcap funds jumped 22.5% to Rs 5,720.87 crore in January, while midcap funds saw a slight increase to Rs 5,147.87 crore. Further, net investments into largecap funds surged 52.3% to Rs 3,063.33 crore.
“Almost 40,000 crore of inflows for month of January 2025 where we have seen broader indices corrected more than 12% from its peak. There was a slight dip of 3.6% in inflows compared to December 2024, but we're still seeing positive flows for the 47th month in a row. This small drop came after a pullback in both the NSE and BSE indices,” said Viraj Gandhi, CEO of Samco Mutual Fund.
The markets experienced intermittent bouts of volatility, driven by sluggish economic growth, rising protectionist tendencies, and geopolitical uncertainties. These factors contributed to market jitters over the past few months. Despite these hurdles, the steadfast commitment of domestic investors through SIPs underscored a deeper confidence in the long-term potential of the Indian economy. This resilience not only cushioned the impact of external shocks but also painted a promising picture of the future, where domestic participation is seen strengthening the foundation of India’s financial markets, Gandhi added.
However, inflows into Sectoral/Thematic funds plunged 41.2% to Rs 9,016.60 crore due to a decline in the number of new fund offers launched during the month. Mutual funds raised Rs 2,838 crore via three Sectoral/Thematic funds during January.
In the fixed income category, debt mutual funds saw net inflows of Rs 1,28,652.58 crore in January against net outflows of Rs 1,27,152.63 crore in December. The liquid fund category recorded higher inflows at Rs 91,592.92 crore, followed by Rs 21,915.33 crore into money market funds. Short Duration Fund and Gilt Fund segments saw net inflows of Rs 2,066.19 crore and Rs 1,359.66 crore, respectively.
“Above data points suggest that Profit booking in dec month saw an outflow where as Investors are back in game with thump. With Markets showing signs of consolidation around Nifty 23000 levels, Trump Tariff Salvo’s and Trade restrictions are now seems to have been absorbed by markets,” said Narendra Singh, smallcase Manager and Founder at Growth Investing.