Equity mutual funds saw net inflows of Rs 21,780 crore in January, the highest monthly inflow in nearly two years, driven by investors’ continued preference for small-cap funds.
In comparison, the category saw inflows of about Rs 17,000 crore in December, according to data released by the Association of Mutual Funds in India (AMFI) on Thursday.
The inflows in January were the highest since March 2022, when equity mutual funds saw inflows of Rs 28,463 crore. Additionally, the latest inflows mark the 35th consecutive month of net inflows into equity funds.
All categories except value funds saw inflows into the equity sector. Fund collection in this category was Rs 4,805 crore for thematic funds, followed by Rs 3,257 crore for small-cap funds and Rs 3,039 crore for multi-cap funds.
The highlight of the month was inflows into large-cap stocks at Rs 1,287 crore, the highest in over 13 months.
“With mid-caps trading at a premium of 15% and small-caps trading at a 20% premium, investors realize the huge valuation gap to large-caps and adjust their investments accordingly.
“While small funds received net flows of over Rs 3,000 crore for the fourth consecutive month, net flows fell by Rs 600 crore on a sequential basis,” said Gopal Kavalireddi, vice president of research at FYERS.
Excluding equities, debt-oriented schemes saw net inflows of Rs 76,469 crore in January after disinvestments in the first two months. The sector had a net outflow of 755.6 billion rupees in December and 47.07 billion rupees in November.
Besides, the hybrid scheme saw an inflow of Rs 20,637 crore.
Overall, the mutual fund industry saw inflows of Rs 123 crore in December as against outflows of Rs 40,685 crore.
Strong inflows pushed the mutual fund industry’s assets under management to Rs 5,274 crore at end-January, compared with Rs 5,078 crore at end-December.
(This story has not been edited by News18 staff and is published from associated news agency – PTI)
Follow us on Google news ,Twitter , and Join Whatsapp Group of thelocalreport.in
