Equity mutual funds have grown by around 72% due to the rapidly growing SIP or Systematic Investment Plan inflows. 12,546 crore in January, the highest net inflow in four months, data from the Association of Mutual Funds in India (AMFI) showed.
Despite volatility in stock markets, inflows in January were much higher than 7,303 crore was seen in December, 2,258 crore in November and 9,390 crores in October, 2022. before that, Equity MF saw flow to the tune of 14,100 crore back in September last year.
The broad indices, NSE Nifty 50 and S&P BSE Sensex fell over 2% last month.
This was the 23rd consecutive month for equity-oriented mutual fund schemes, AMFI data showed.
“Despite volatility in stock markets, investors continue to have faith in equity mutual funds, as evidenced by 12,546 crore net inflows in January, a growth of 72 per cent on a month-on-month basis,” said Gopal Kavalireddy, Head of Research, FYERS.
Meanwhile, foreign sales in equities reached a seven-month high of $3.51 billion last month. The increase in inflows eased some of the pressure on the markets in January, which saw heavy selling by foreign investors. Foreign portfolio investors (FPIs) remained net sellers for the month.
on SIP contribution
Contributions to SIPs – in which investors make regular payments into mutual funds – rose to a record for the sixth consecutive month, according to the data. 13,856 crore in January 13,573 crore in December. This was the fourth consecutive month when SIP inflows remained above 13,000 crore mark.
The total number of SIP accounts for the month of January stood at 6,21,62,694, up from 9,20,163 for the month of December 2022 at 6,12,42,531. Also, the new SIPs registered for the month of January were over 22 lakh.
AMFI CEO NS Venkatesh said rising SIP contributions have acted as a cushion for the markets amid persistent FPI outflows.
SIP contribution affected 1.5 lakh crore in the last 12 months, much more than the foreign outflow 1.17 lakh crore.
MF industry registers net inflows overall 11,373 crore in the previous month, more than Rs. 4,491 crore views in the last month.
Meanwhile, the Assets Under Management (AUM) of the mutual fund industry registered a marginal decline 39.62 lakh crore at the end of January from Rs. 39.89 lakh crore at the end of December. Equity AUM of this was 15.06 Lakh Crore and over Loan AUM 12.38 lakh crores.
Gold Exchange-Traded Fund (ETF) came 21,835 crores in the month of January.
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