The pace of investment in equity mutual funds remained somewhat slow in January. According to data released by industry body AMFI on Tuesday, net investment in equity mutual fund schemes stood at Rs 24,028 crore in January. This is 14 percent less than last month.
Investment in equity funds decreased for the second consecutive month
This was the second consecutive month when investment in equity funds declined. Investors remained cautious amid weak market conditions and geopolitical uncertainties.
The total assets of the industry continue to increase
- However, despite the slowdown in equities, total assets of the mutual fund industry continued to grow.
- Total assets under management (AUM) increased to Rs 81.01 lakh crore in January. It was Rs 80.23 lakh crore in December.
- The entire industry recorded a net investment of Rs 1.56 lakh crore during January. this
- This marks a strong comeback after net outflows of Rs 66,591 crore in December, supported by investment across categories.
How was investing in equity funds in the last few months?
According to the data, inflows into equity funds declined from Rs 29,911 crore in November and Rs 28,054 crore in December, although it remained higher than October’s Rs 24,690 crore.
Where was the interest of investors?
- Flexi-cap funds led the way among equity schemes, with net inflows of Rs 7,672 crore. After this, investment of Rs 3,185 crore was recorded in mid-cap funds and Rs 3,182 crore in large and mid-cap funds.
- There was a net investment of Rs 2,005 crore in large-cap funds and Rs 2,942 crore in small-cap funds. At the same time, Equity Linked Savings Scheme (ELSS) saw a net withdrawal of Rs 593.69 crore, which is being attributed to profit booking and tax-related adjustments.
- Meanwhile, there was a sharp jump in investments in gold exchange-traded funds (ETFs). There was an investment of Rs 24,040 crore in gold ETFs in January, which is more than double the investment of Rs 11,647 crore in December.
- Debt mutual funds also made a comeback and recorded a net investment of Rs 74,827 crore in January, while there was a huge outflow of Rs 1.32 lakh crore from these funds in December.
