Equity MF Inflows Dip Marginally To Rs 39,688 Cr In Jan, Says AMFI

Small-cap funds saw strong inflows, rising 22.6% to Rs5,720.87 cr. Mid-cap funds increased slightly to Rs5,147.87 cr. Large-cap funds’ inflows surged 52.3% to Rs3,063.33 cr. On the other hand, sectoral and thematic funds saw a steep decline by 41.2% to Rs 9,016.60 cr

New Delhi: Investors’ confidence in equity mutual funds (MFs) remains strong with the segment attracting Rs39,688 crore in January, driven by sharp inflow in small cap and flexi-cap schemes, even as market volatilities continued. However, this was 3.56 per cent lower than the net inflow of Rs41,156 crore registered in December. The latest fund infusion by investors also marks the 47th consecutive month of inflows into the segment, according to data released by Association of Mutual Funds in India (Amfi) on Wednesday.

Moreover, inflows into systematic investment plans (SIP) came at Rs26,400 crore, a tad lower from December’s Rs26,459 crore. The SIP assets under management stood at Rs13.2 lakh crore, which is around a fifth of the overall pie.

“Despite market volatility, SIP contributions remained robust, totalling Rs26,400 crore for the month. We will continue to educate investors to stay invested through phases of volatility with a focus on disciplined, long-term approach to wealth creation,” Venkat Chalasani, Chief Executive, Amfi, said.

The decline in equity fund inflows occurred amid sluggish equity markets, with the BSE Sensex dropping by 1.28 per cent in January. The investors’ focus towards making the most of the market fall in January can also be gauged from the fact that around 30.7 lakh new folios were added in January, Himanshu Srivastava, Associate Director- Manager Research, Morningstar Investment Research India, said.

Further, volatility in the Indian equity markets, combined with geopolitical uncertainties and anticipation of the Union Budget, led to a decline in equity mutual fund AUM, Jatinder Pal Singh, CEO, ITI Mutual Fund, said. The assets under management (AUM) for equity-oriented mutual funds dropped by 4 per cent in January to Rs29.46 lakh crore from Rs30.57 lakh crore in December. Within the equity schemes, sectoral or thematic category attracted investors with the highest net inflow at Rs9,016 crore, which is way lower than Rs15,331 crore inflow in December. The midcap category saw inflows of Rs5,148 crore in January 2025, while the smallcap category witnessed infusion of Rs5,721 crore, the data showed. The small and midcap schemes of mutual funds continued to attract investors with inflows highlighting their preference for these segments largely driven by the high returns that they have generated over the last few years, Srivastava said.