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Mutual fund SIPs remain undeterred despite a market sell-off with the monthly inflows remaining above Rs 26,000 at Rs 26,400 crore in January as against Rs 26,459 crore crore in December.
All equity-oriented categories received net inflows during January 2025.
Equity mutual fund saw an inflow of Rs 39,687.78 crore in January despite a sharp sell-off in the share market in the past few months, according to the latest data from the Association of Mutual Funds of India (AMFI) released on Wednesday. Though the equity MF inflows fell 4 per cent over the last month, it is the 47th consecutive month of net inflows into the segment.
The systematic investment plan (SIP) also remained undeterred with the monthly inflows remaining above Rs 26,000 at Rs 26,400 crore in January as against Rs 26,459 crore crore in December.
All equity-oriented categories received net inflows during January 2025.
However, given the correction in the markets, the assets under management for equity oriented mutual funds declined by 4 per cent in January to Rs 29,46,764.20 crores as against Rs 3,057,548.59 crores in December.
Importantly, inflows into small-cap funds in January surged by 22.6 percent to Rs 5,720.87 crore, while midcap funds saw a marginal rise to Rs 5,147.87 crore. Further, net investments into large-cap funds surged 52.3 per cent to Rs 3,063.33 crore.
On the other hand, inflows into sectoral/thematic funds plunged 41.2 percent to Rs 9,016.60 crore on fall in the number of new fund offers launched during the month. However, they continue to maintaine the top position with the highest inflows of Rs 9,016 crore, followed by small-cap.
Mutual funds garnered Rs 2,838 crore via three sectoral/ thematic Funds during January.
Around 30.7 lakhs new mutual fund folios were added in January.
Himanshu Srivastava, associate director- manager research at Morningstar Investment Research India, said the investors focussed on making the most of the market fall in January, taking correction in the market as an opportunity to build their exposure further.
“The performance of the equity markets and the returns that equity oriented mutual funds have generated in the last few years has anyways motivated several investors to enter into the equity markets, and its pleasing to see more and more investors using mutual funds route to do so because of the obvious benefit that mutual fund offers. The flows have been consistent across the segment signifying a broader appeal of the equity markets. All the equity-oriented categories received net inflows during the month,” he added.
Manish Mehta, national head- sales, marketing & digital business, Kotak Mahindra Mutual Fund, said, “January numbers came in a tad lower than December. Investor participation across various categories of schemes continues especially largecap-oriented schemes. Increasing awareness of mutual funds and it is an efficient route for long-term wealth creation is demonstrated by investor behaviour who seem to be adding to investments through the SIP/STP route.”
Debt mutual funds
In the fixed-income category, net inflows into the debt mutual funds stood at Rs 1,28,652.58 crore in January against the Rs 1,27,152.63 crore recorded in December.
The liquid fund category saw higher inflows at Rs 91,592.92 crore, followed by Rs 21,915.53 crore investments into Money Market Funds.
Short Duration Fund and Gilt Fund segments saw net outflows of Rs 2,066.19 crore and Rs 1,359.66 crore, respectively.
Hybrid mutual funds
Hybrid funds, which invest across equity, debt and commodity assets, saw an increase in inflows by 100.6 per cent to Rs 8,767.52 crore.
Inflows into arbitrage Funds remained the highest at Rs 4,291.74 crore, compared with the outflow of Rs 409.09 crore in December.
Further, Multi Asset Allocation Fund saw investments worth Rs 2,122.85 crore, but net inflows slumped 17.6 percent month-on-month. Dynamic Asset Allocation/Balanced Advantage Fund witnessed investments worth Rs 1,512.06 crore.
