Finance

Equity mutual funds register Rs 14,888-crore net inflow in January: Amfi

During the month, 15 new fund offers raised Rs 3,230 crore across three categories — income/debt oriented schemes, index and exchange traded funds.

Net inflows into equity-linked schemes dipped 40% month-on-month in January to Rs 14,888.77 crore due to volatility in the equity markets amid weak global cues and sell-off from overseas investors. According to data released by the Association of Mutual Funds in India (Amfi), barring the value/contra funds, all other categories in equity funds witnessed positive flows. However, this marked the 11th straight month of positive inflows into equity-linked schemes. Flexicap funds reported net inflows of Rs 2,527 crore during the month compared to Rs 2,408 crore in December.

During the month, 15 new fund offers raised Rs 3,230 crore across three categories — income/debt oriented schemes, index and exchange traded funds.

The monthly SIP (systematic investment plan) contribution continued to remain robust as it surged to Rs 11,516.62 crore in January, higher by Rs 211.28 crore month-on-month. At the end of January, SIP AUM stood at Rs 5,76,588 crore. The number of SIP accounts also crossed the five-crore mark in January.

“From February, there could be certain apprehensions in the mind of investors because of corrections in the market, however, we expect to see good investments via SIPs since it’s meant for long-term investment,” NS Venkatesh, chief executive, Amfi, said during a media address on Wednesday.

Further, inflows into debt schemes also turned positive at Rs 5,087 crore in January, after witnessing outflows to the tune of Rs 49,154 crore in the previous month. On the other hand, gold ETFs saw outflows of Rs 451.69 crore, the first time since July 2021 because of a correction in the gold prices, mainly due to a hawkish stance by the US Federal Reserve, said Venkatesh, adding that “gold prices have corrected internationally, which has also impacted the Indian markets.”

The overall average under management (AUM) of the mutual fund industry rose to Rs 38.88 lakh crore in January from Rs 37.72 lakh crore in December 2021, data from Amfi showed. A total of 15 new schemes were launched in January, including the new Silver ETFs launched in the country by ICICI Prudential AMC and Aditya Birla Sun Life AMC. Going forward, overall economic growth, healthier corporate earnings growth, and rising job creation avenues will attract a higher quantum of savings into the mutual fund industry, said experts.

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