Equity Mutual Fund Inflows Remain Strong at ₹39,688 Crore in January: AMFI

Equity mutual funds (MFs) attracted net inflows of ₹39,687.78 crore in January, maintaining a 47-month streak of positive inflows, despite a downturn in the domestic stock market, according to AMFI data released on Wednesday.

While this marks a marginal decline from December’s ₹41,155.91 crore inflows (down 3.5%), it reflects investors’ continued faith in mutual funds amid market corrections. The dip in inflows coincided with the BSE Sensex falling by 1.28% and the Nifty declining 0.99% in January.

Investor Sentiment and Category-Wise Trends
Himanshu Srivastava from Morningstar Investment Research India attributed the sustained inflows to investors viewing market corrections as an opportunity to build exposure further.

Small-cap funds saw strong inflows of ₹5,720.87 crore, a 22.6% jump from December.

Mid-cap funds recorded ₹5,147.87 crore in inflows, slightly up from the previous month.
Large-cap funds saw the biggest surge, with inflows rising 52.3% to ₹3,063.33 crore.

Sectoral and thematic funds, however, saw a 41.2% decline in inflows, down to ₹9,016.60 crore, mainly due to fewer new fund launches.

Debt Mutual Funds Reverse Trend with Massive Inflows

In a sharp turnaround, debt mutual funds recorded net inflows of ₹1,28,652.58 crore in January, bouncing back from outflows of ₹1,27,152.63 crore in December.

Liquid funds led the inflows at ₹91,592.92 crore.

Money market funds received ₹21,915.53 crore.

Short-duration funds (-₹2,066.19 crore) and gilt funds (-₹1,359.66 crore) witnessed outflows.

Open-ended mutual funds recorded net inflows of ₹1,87,606.23 crore in January, a dramatic reversal from net outflows of ₹80,509.20 crore in December.

This data highlights growing investor confidence in mutual funds as a preferred investment avenue, even amid market volatility.