Inflows into equity funds dropped marginally, shows AMFI’s January data | Mint

Inflows into equity mutual fund inflows witnessed a marginal decline of 3.6 per cent in January, totaling ₹39,687 crore against ₹41,155 crore in December, showed the data released by the Association of Mutual Funds in India (AMFI) on February 12.

Despite the slight decrease in monthly inflows, net investments into open-ended equity funds remained in the positive for the 47th consecutive month.

Mutual Fund Folios are at 22,91,99,377 as of Jan 2025. Retail MF Folios (Equity + Hybrid + Solution Oriented Schemes) are at 18,22,23,078 for the month of Jan 2025 as compared to 17,89,93,911 for the month of Dec 2024.

Retail AUM (Equity + Hybrid + Solution Oriented Schemes) stood at ₹ 38,77,595 crores for Jan 2025 as compared to an AUM of ₹ 39,91,313 crores in Dec 2024.

“Assets under management (AUM) of the domestic mutual fund industry increased to ₹67.25 lakh crore in January, which is a 27.52% growth year-on-year. Despite market volatility, SIP contributions remained robust, totalling ₹26,400 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,” said Venkat Chalasani, Chief Executive, AMFI.

SIP contributions

Systematic Investment Plan (SIP) contributions also remained robust in January, surpassing the ₹26,000 crore mark. The total SIP inflow for the month was ₹26,400 crore, compared to ₹26,459 crore in December, reflecting a minor dip of just 0.2%.

The drop is seen primarily in case of flexi caps and large caps. Contribution to flexi cap equity funds dropped from ₹5,697 crore in December to ₹4,730 crore in Januar. In case of large cap funds, contribution dropped from ₹3,063 crore to ₹2,010 crore in January.

A dozen NFOs launched

In the month of Jan, a total of 12 new fund offers (NFOs) were launched, raising a total of ₹4,544 crore. These funds included 5 equity, two debt, four index and one ETF.

Meanwhile, inflow into dynamic asset allocation funds dropped to ₹1,512 crore against ₹1,596 in December. At the same time, inflow to index funds rose to ₹5,254 crore against ₹4,785 crore in the previous month.

“Domestic investors continued with their investment spree into the equity oriented mutual funds in the month of January, taking correction in the market as an opportunity to build their exposure further. This logged the 47th consecutive month of net inflows into the segment,” says Himanshu Srivastava, Associate Director, Manager Research, Morningstar Investment Research India.

Suranjana Borthakur, Head of Distribution & Strategic Alliances, Mirae Asset Investment Managers (India), said, “Despite recent market corrections, investor confidence remains strong, as reflected in steady equity fund inflows, particularly in large-cap and flexi-cap categories, which saw inflows rise from ₹2,000 crore to ₹3,000 crore and ₹4,700 crore to ₹5,600 crore, respectively. Hybrid fund inflows have also increased, primarily driven by a rise in arbitrage allocations. Meanwhile, mid-cap fund flows have remained stable, and small-cap funds continue to attract interest. The ELSS category has seen growing traction, highlighting investors’ long-term approach.”