Divergent Trends: Equity Funds Gain While Debt Schemes Face Massive Outflows in December

Equity mutual funds saw reduced inflows of Rs 28,054 crore in December, marking a 6% decline from November. Overall, the mutual fund industry faced net outflows of Rs 66,591 crore, mainly due to massive withdrawals from debt schemes, despite continued investment interest in equity and gold funds.

In a noteworthy turn of events for December, equity mutual funds saw inflows of Rs 28,054 crore, revealing a 6% reduction compared to the previous month, as per data from Amfi. Despite the decline, this figure was still an improvement over October.

The overall mutual fund industry, however, experienced net outflows of Rs 66,591 crore during December, primarily driven by significant redemptions from debt schemes, which overshadowed continued interest in equities and growing investments in gold exchange-traded funds.

While flexi-cap funds led the charge with net inflows of Rs 10,019 crore, debt funds faced severe withdrawals of Rs 1.32 lakh crore, contrasting investors' preference fluctuations amid uncertain market conditions.

(With inputs from agencies.)