Punjab News Network

Investments in equity mutual funds soar to an almost two-year high in January, reaching Rs 21,780 Cr

<p>Because investors are still drawn to small-cap funds, equity mutual funds saw a net inflow of Rs 21,780 crore in January, the largest monthly inflow in almost two years.</p>
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<p>In contrast, data provided on Thursday by the Association of Mutual Funds in India (AMFI) shows that the category had an inflow of around Rs 17,000 crore in December.</p>
<p>Since March 2022, when equity-oriented mutual funds had an inflow of Rs 28,463 crore, the flow in January was the largest. Additionally, this current flow represents net inflows of equities funds for 35 straight months.</p>
<p>All categories saw an increase in the equity segments, with the exception of value funds. Funds of Rs 4,805 crore from theme funds, Rs 3,257 crore from small-cap funds, and Rs 3,039 crore from multi-cap funds were raised to support the category.</p>
<p>This month’s high point was the inflow of funds into the large-cap category, which reached a record high of Rs 1,287 crore. This was the greatest level of inflows in over 13 months.</p>
<p>Investors are adjusting their investments in response to realizing the significant valuation gap with the large-cap group, with midcaps trading at 15% premiums and small caps at 20% premiums.</p>
<p>Gopal Kavalireddi, Vice President of Research at FYERS, said that “small-cap funds garnered greater than Rs 3,000 crore of net flows for the fourth consecutive month, but the quantum was lower by Rs 600 crore on a month-on-month basis.”</p>
<p>In addition to stocks, debt-oriented schemes saw a net inflow of Rs 76,469 crore in January after two months of capital withdrawals. In December and November, the category had net outflows of Rs 75,560 crore and Rs 4,707 crore, respectively.</p>
<p>Additionally, Rs 20,637 crore came into hybrid schemes.</p>
<p>Overall, the mutual fund sector had an inflow of Rs. 40,685 crore in December, compared to an inflow of Rs. 1.23 lakh crore in the month under review.</p>
<p>The mutual fund industry’s assets under management increased to Rs 52.74 lakh crore at the end of January from Rs 50.78 lakh crore at the end of December thanks to the robust inflow.</p>