Despite market volatility, MFs see Rs 39K cr inflow

Investors’ confidence in equity mutual funds remains strong with the segment attracting Rs 39,688 crore in January, driven by sharp inflow in small cap and flexi-cap schemes, even as market volatilities continued.

However, this was 3.56 per cent lower than the net inflow of Rs 41,156 crore registered in December. The latest fund infusion by investors also marks the 47th consecutive month of inflows into the segment, according to data released by Association of Mutual Funds in India (AMFI) on Wednesday.

Moreover, inflows into systematic investment plans (SIP) came at Rs 26,400 crore, a tad lower from December’s Rs 26,459 crore. The SIP assets under management stood at Rs 13.2 lakh crore, which is around a fifth of the overall pie.

“Despite market volatility, SIP contributions remained robust, totalling Rs 26,400 crore for the month. We will continue to educate investors to stay invested through phases of volatility with a focus on disciplined, long-term approach to wealth creation,” Venkat Chalasani, CEO, AMFI, said.

The decline in equity fund inflows occurred amid sluggish equity markets, with the BSE Sensex dropping by 1.28 per cent in January.

The investors’ focus towards making the most of the market fall in January can also be gauged from the fact that around 30.7 lakh new folios were added in January, Himanshu Srivastava of Morningstar Investment Research India said.