Equity mutual funds record inflow of Rs 14,888 cr in January, lower than Rs 25,077 cr in December: AMFI

Equity mutual funds recorded a net sum of Rs 14,888 crore in January, making it the 11th consecutive monthly net inflow. However, the data from the Association of Mutual Funds in India (AMFI) suggested that this was much lower than the net inflow witnessed in December which was Rs 25,077 crore.

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"While stock markets were volatile in January 2022 and ended with flat returns, equity fund flows continue to be stronger with Rs.14,887 crore of net flows, much higher than the Rs.12,636 crore (net of equity NFOs) of net flows witnessed in December 2021," Gopal Kavalireddi, Head of research, FYERS said.
The equity schemes have been witnessing net inflow since March 2021 and the segment has received a net inflow of over Rs 1 lakh crore during this period highlighting the positive sentiments among investors. Before this, such schemes had consistently witnessed outflows for eight months from July 2020 to February 2021 losing Rs 46,791 crore.

"The Indian equity markets have been witnessing a correction in tandem with the Global markets. Factors like the possibility of a FED rate hike, a slowdown in China and the growing concern between Ukraine and Russia have led to decline in the global equity markets," Kavitha Krishnan, Senior Analyst - Manager Research, Morningstar India, said.

She further added, "Most of the investors continued to find the correction in the market as good entry point, which is evidenced by the quantum of fund mobilised, which stood at Rs 33234.21 crores in January 2022 as compared to Rs 43,579.50 crores in December."

The mutual fund industry registered a net inflow of Rs 35,252 crore during the period under review compared to a net outflow of Rs 4,350 crore in December.

The average under management (AUM) of the industry rose to Rs 38.88 lakh crore at January-end from Rs 37.72 lakh crore at December-end.

Akhil Chaturvedi, Chief Business Officer, Motilal Oswal Asset Management said, "Retail investors continue to maintain optimistic stance on investing on market dips. While, on one hand we are seeing FII outflows on the other hand we are seeing positive flows from domestic investors. This is a very positive change amongst investors, it is always advisable to buy on dips for better rupee-cost averaging resulting in good outcomes in long term."

He further added that it is also encouraging to see positive flows in dynamic category, as most asset-allocation models are maintaining a good mix of Debt and Equity allocation to benefit from market corrections and increasing equity allocations.”

Within the equity segment, all categories saw net inflows barring value funds. While the flexi-cap fund category saw the highest net inflow to the tune of Rs 2,527 crore, followed by thematic funds at Rs 2,073 crore during the period under review.

The debt segment saw a net infusion of Rs 5,087 crore in January as compared with a net outflow of Rs 49,154 crore in December.

(Disclaimer: The views/suggestions/advises expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)