Equity Fund Inflows Jump 28% To 22-Month High In January On Small, Multi-Cap Schemes

Inflows into equity funds surged to a 22-month high in January, driven by investments into multi- and small-cap schemes as the markets scaled record highs.

Net investment into equity and equity-linked schemes surged 28% over the previous month to Rs 21,780 crore in January, according to data released by the Association of Mutual Funds in India on Thursday. That's the highest since March 2022.

Mutual funds industry across debt and equity schemes recorded an inflow of Rs 1.23 lakh crore during the month against an outflow of Rs 40,684 crore in December.

Small-cap funds logged inflows of Rs 3,257 crore in January compared with Rs 3,857.5 crore in December. Large-cap schemes saw inflows of Rs 1,287 crore against Rs 280.9-crore outflows in the last month.

Mid-cap schemes received Rs 2,061 crore compared with Rs 1,393 crore in December. Inflows into multi-cap funds stood at Rs 3,038.7 crore against Rs 1,851.9 crore.

SIP contribution to mutual funds industry stood at a record Rs 18,838 crore in January compared with Rs 17,610 crore in December.

Liquid funds, used by corporates to park short-term cash, saw inflows of Rs 49,467.7 crore compared with outflows of Rs 39,675.3 crore in the previous month.

Credit-risk funds reported Rs 302.68-crore outflows. These schemes recorded outflows of Rs 367.5 crore in December.

Money-market fund inflows stood at Rs 10,651 crore in January against an outflow Rs 8,383.6 crore in December.

The debt-oriented funds witnessed inflows of Rs 76,469 crore in January against Rs 75,560 crore of outflow in the previous month.

The overall net inflow of Rs 1.23 lakh crore across debt and equity schemes is the highest in at least over three years since September 2020.