December MF data: Equity inflow bounces back; investors seek largecap safety

Flows into equity mutual funds have improved to Rs 4,432.2 crore in December after falling to a 3.5 year low in the previous month.

There is a continued preference for the safety of large-cap funds over other categories with flows seen at Rs 1,135 crore. This, however, is a tad bit lower than the November reading of Rs 1,197 crore. Midcap funds saw a small decline with inflows falling to Rs 796 crore versus Rs 801 crore in November.

The improvement is marked by 182 percent jump in multi-cap funds and a 61 percent jump in small-cap funds.

The SIP contribution during December saw an acceleration after being stagnant for a while as the reading came in at Rs 8,518.47 crore which was the betterment of Rs 245 crore over the previous month.

Hybrid funds and credit risk funds, along expected lines, continued to see outflows.

Given that December is a quarter-ending month, liquid funds have registered an outflow of Rs 71,000 crore approximately, leading to a dip in the assets under management to about Rs 26 lakh crore.

The ETF number is also striking at Rs 12,673 crore. Almost all of it should be attributed to the inflows into the Bharat Bond ETF in November.