Mutual Funds Market Update: A Balancing Act Between Profits and Precaution
The mutual fund sector sees a 14% dip in net equity inflows in January, amounting to Rs 24,028 crore, amid cautious investor sentiment. However, total assets under management rose to Rs 81.01 lakh crore. Growth was bolstered by inflows in various fund categories, despite significant outflows in December.
- Country:
- India
In January, equity mutual funds noted a decline in net inflows, drawing in Rs 24,028 crore, a 14% drop from December. This dip in equity inflows marked the second month of moderation, with investors exercising caution amid uncertain market conditions and geopolitical concerns.
Despite the reduced investment in equity funds, the mutual fund industry experienced an overall expansion. The total assets under management swelled to Rs 81.01 lakh crore in January, up from Rs 80.23 lakh crore in December. The industry recorded net inflows of Rs 1.56 lakh crore during the month, recovering from net outflows in December, aided by multiple fund category inflows.
Flexi-cap funds led the way among equity schemes with Rs 7,672 crore in net additions, followed by mid-cap and large-mid-cap funds. Notably, equity-linked savings schemes (ELSS) faced net outflows amidst profit booking and tax adjustments. Meanwhile, gold exchange-traded funds surged, with a more than twofold increase in inflows to Rs 24,040 crore.
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