In January, equity fund inflows surged by 28%, reaching Rs 21,781 crore. This growth is significant, indicating positive trends in investments. The rise in systematic investment plans (SIPs) also hit a record high, surpassing Rs 10 trillion in assets under management.
January’s Record Equity Mutual Fund Inflows: Notable Achievements
- Equity fund inflows surged by 28% to reach Rs 21,781 crore in January.
- Investments through systematic investment plans (SIPs) hit a new high of Rs 18,838 crore.
- The total SIP assets under management (AUM) surpassed Rs 10 trillion, reaching Rs 10.27 trillion.
- The inflows into open-ended equity funds have remained positive for 35 consecutive months since March 2021.
- The overall net inflows into open-ended equity funds amounted to Rs 1.23 trillion in January.
- The assets under management of the mutual fund industry stood at Rs 52.74 trillion.
Equity Fund Inflows Maintain 35-Month Positive Streak: AMFI Data Reveals Record Highs
Equity fund investments soared by 28% to Rs 21,780.56 crore in January, marking a 22-month peak, according to data from the Association of Mutual Funds of India (AMFI). This continues the trend of positive inflows into equity mutual funds, now stretching for 35 months since March 2021.
Investments via systematic investment plans (SIPs) achieved a fresh milestone, hitting Rs 18,838 crore, up from Rs 17,610 crore in December.
The number of new SIP registrations reached 51.84 lakh, driving the SIP assets under management (AUM) to Rs 10.27 trillion.
Venkat Chalasani, Chief Executive of AMFI, highlighted the remarkable growth in SIP accounts and registrations, indicating investors’ commitment to disciplined wealth creation.
Open-Ended Equity Funds Surge to Rs 1.23 Trillion, Market Shifts Towards Large-Cap Funds
In terms of overall mutual fund performance, net inflows into open-ended equity funds reached Rs 1.23 trillion, a significant increase compared to the previous month’s outflow of Rs 42,761 crore. The industry’s total assets under management stood at Rs 52.74 trillion in January.
The market witnessed a shift towards large-cap funds, with investments in this category reaching Rs 1,287 crore, the highest in over 13 months.
Midcap funds saw net inflows of Rs 2,061 crore, while smallcap fund inflows decreased by 16% to Rs 3,257 crore.
Debt Funds Rebound
Debt-oriented funds experienced a positive turnaround in sentiment, with net inflows of Rs 76,469 crore in January after two consecutive months of outflows. Liquid funds recorded the highest net inflows, followed by money market funds and overnight funds.
Hybrid Funds Maintain Momentum
Hybrid funds continued their upward trend, with net inflows of Rs 20,637 crore. Multi-asset allocation funds attracted notable inflows, particularly driven by new fund offers (NFOs).
Significant Inflows into Index Funds and Gold ETFs
Index funds and gold exchange-traded funds (ETFs) also saw significant inflows, indicating investor interest in passive funds and gold as a safe-haven investment amid ongoing geopolitical tensions and inflation concerns.
Overall, while equity mutual funds continue to attract substantial investments, the market is witnessing diversification across asset classes, with investors seeking to mitigate risks and capitalise on market opportunities.
The substantial increase in equity fund inflows and SIP investments reflects a positive outlook for the market. This trend highlights investors’ confidence and commitment to wealth creation through disciplined investing.
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