homepersonal finance NewsEquity MFs see 35th month of inflows in January, debt funds attract ₹76,469 crore
Equity MFs see 35th month of inflows in January, debt funds attract ₹76,469 crore
AMFI data: In a detailed breakdown, small-cap funds witnessed an inflow of ₹3,257 crore in January, showing a marginal decline from ₹3,857 crore in December 2023.
Equity mutual funds in India have maintained their upward trajectory, marking the 35th consecutive month of inflows, as per data released by the Association of Mutual Funds in India (AMFI). The latest figures for January 2024 reveal a surge in inflows to ₹21,749 crore, up from ₹16,997 crore in December 2023.
In a detailed breakdown, small-cap funds witnessed an inflow of ₹3,257 crore in January, showing a marginal decline from ₹3,857 crore in December 2023.
Largecap funds witnessed inflows of around ₹1,287.05 crore as against an outflow of ₹280.94 crore in December.
Mid-cap funds, however, saw increased investor interest with an inflow of ₹2,061 crore, up from ₹1,393 crore in December.
Meanwhile, credit risk funds experienced an outflow of ₹303 crore, down from ₹368 crore in the preceding month of December 2023.
Exchange-Traded Funds (ETFs) saw a significant uptick in inflows, reaching ₹571 crore in January compared to ₹200 crore in December 2023.
This growth signals a robust investor interest in ETFs in the early months of 2024.
Liquid funds, typically considered a safer haven, recorded an inflow of ₹49,468 crore in January, rebounding from the outflow of ₹39,675 crore in the previous month.
New Fund Offers (NFOs) continued to attract investor attention, raising ₹6,817 crore in January.
Breaking down the sectoral trends further, dividend yield funds experienced an inflow of ₹382 crore in January, marking an increase from ₹279 crore in December 2023.
Equity-Linked Savings Schemes (ELSS) saw a substantial turnaround with an inflow of ₹532 crore, compared to an outflow of ₹314 crore in the preceding month.
Total debt scheme inflows reached ₹76,469 crore, demonstrating a positive shift from the outflow of ₹75,560 crore in December 2023.
Hybrid funds, combining equity and debt components, also observed a surge, attracting ₹20,637 crore in January, up from ₹15,009 crore in December.
Corporate bond funds saw an impressive inflow of ₹1,301 crore, significantly higher than the ₹188 crore inflow recorded in December.
The total assets under management (AUM) for the mutual fund industry climbed to ₹52.74 lakh crore.
Commenting on the data, Sunil Subramaniam, MD & CEO of Sundaram Mutual Fund, expressed optimism.
He emphasised the success of the industry in repositioning large-cap and larger mid-cap funds, given the significant valuation differences.
He also highlighted the strength of Systematic Investment Plans (SIPs) and the positive trend in mid-cap investments.
Anthony Heredia, MD & CEO of Mahindra Manulife Mutual Fund, noted a shift in investor preference towards large and mid-cap funds, highlighting the decline in small-cap flows.
He also discussed the significance of multi-asset funds in attracting fixed-income investments.
While NFOs attracted substantial funds, Heredia cautioned against thematic and sectoral equity NFOs, urging investors to maintain diversification across capitalisations.
First Published: Feb 8, 2024 11:47 AM IST
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