Equity mutual funds witness 9% surge in inflows, reach ₹17,000 crore in December

In December 2023, equity mutual funds experienced a notable surge in inflows, recording a substantial ₹17,000 crore, according to the latest data released by the Association of Mutual Funds in India

The breakdown of these inflows unveils intriguing trends within various segments of equity mutual funds. Small-cap funds attracted a significant chunk, amounting to nearly ₹3,857 crore, showcasing a slight uptick compared to the previous month's ₹3,699 crore. Conversely, mid-cap funds encountered a decline from ₹2,665 crore in November to approximately half that amount, totalling ₹1,393 crore in December.

Highlighting specific categories, multi-cap funds received a healthy influx of ₹1,851 crore, while large-cap funds experienced an outflow of ₹280.9 crore during the same period.

A notable aspect was the consistent growth observed in systematic investment plans (SIPs), which accumulated ₹17,610 crore in December, as per the AMFI data.

Venkat Chalasani, the Chief Executive of AMFI, noted the remarkable ₹4,259 crore inflow into sectoral funds, attributing the ongoing positive investment momentum to multiple factors. He cited subdued inflationary pressures and a thriving economy, both contributing to the buoyancy witnessed in the markets, reported Mint.

Beyond equity funds, hybrid mutual funds also witnessed substantial inflows of ₹15,009 crore. Within this category, arbitrage funds were particularly attractive, drawing in ₹10,645 crore, while equity savings and multi-asset allocation funds gathered ₹1,080 crore and ₹2,420 crore, respectively.

Index funds experienced an influx of ₹703 crore, while other Exchange-Traded Funds (ETFs) collectively accumulated ₹200 crore. Additionally, gold ETFs secured ₹88 crore during the period.

December also witnessed the introduction of 21 new fund offers, amassing a total of ₹9,872 crore. Of these, 14 were open-ended schemes, receiving ₹7,812 crore in funding, while seven closed-ended schemes collectively gathered ₹2,060 crore.

Among the newly launched funds were six sectoral/thematic mutual funds, attracting a combined investment of ₹6,321 crore, and two hybrid funds that amassed ₹1,228 crore.

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