Big surge in equity mutual fund inflows in January

Despite the market volatility over the last few months, data from the Association of Mutual Funds of India (AMFI) shows a strong surge in equity mutual fund inflows. The jump in the equity fund inflows was led largely by investments into small cap funds.

In January, inflows into equity mutual funds were 72% higher, at Rs 12,546 crore, than in December. Not just that, SIP (Systematic investment plan) flows also remained strong in January, and rose to Rs 13,856 crore, which was a new record high. In December, SIP flows stood at Rs 13,573 crore.

Meanwhile, the debt mutual funds category witnessed a net outflow of Rs 10,316 crore in January. The outflow for the debt category in December was much higher at Rs 21,946 crore.

Akhil Chaturvedi, chief business officer, Motilal Oswal AMC told Moneycontrol, “Strong flows for the month supported by SIP inflows, despite a volatile month with markets being subdued the net positive flows is a sign of increasing maturity of investors to continue their allocations in equity mutual funds.”