Mutual Funds See Robust Inflows Amid Market Volatility

Equity mutual funds in India saw significant inflows amounting to Rs 39,688 crore in January, despite market volatility. Small and midcap schemes were particularly popular among investors, marking the 47th consecutive month of net inflows. Overall, mutual funds' assets under management increased to Rs 67.25 lakh crore.

Equity mutual funds in India attracted a notable Rs 39,688 crore in January despite ongoing market volatility, with small and midcap schemes driving this trend. According to the Association of Mutual Funds in India's data, although inflows were 3.5% lower than December, the segment marked its 47th month of consecutive net inflows.

The appeal of sectoral or thematic categories persisted, yet they witnessed a decrease from Rs 15,331 crore in December to Rs 9,016 crore in January. Midcap schemes recorded an inflow of Rs 5,148 crore, while smallcap schemes saw Rs 5,721 crore, both reflecting investor confidence based on strong past returns, explains Himanshu Srivastava of Morningstar Investment Research India.

On the larger scheme fronts, inflows rose to Rs 3,063 crore, and combined large and midcap segments totaled Rs 4,123 crore in January. Additionally, debt funds reversed their trend with an inflow of Rs 1.28 lakh crore, contrasting with the prior month's outflows. Gold exchange-traded funds also saw investor interest, bringing in Rs 3,751 crore, while the overall mutual fund assets under management reached Rs 67.25 lakh crore by January's end.