Equity mutual fund inflows stabalise in December; debt funds lose money

After huge outflows from major categories in November, equity mutual funds stabalised in December with inflows worth Rs 7,303 crore, according to AMFI data. Most equity categories saw positive inflows in December with small cap funds leading the pack. Debt mutual fund numbers fell in December with big outflows from most categories. Debt funds cumulative outflows stood at Rs 21,946.73 crore in December.

24 open-ended NFOs garnered Rs 6,954 crore in December. While 12 close-ended NFOs accumulated Rs 1,532 crore in December.

Among equity funds, small cap funds saw inflows worth Rs 2,244.77 crore. Large cap funds continued to see outflows even in December. The category saw total outflow of Rs 26.37 crore. Sectoral funds that have been seeing big inflows in the last couple of months, also saw outflows in December.

Among the debt categories, only two categories- ultra short duration and long duration funds – saw positive inflows in December. All the other categories lost money. Liquid funds and floater funds saw the biggest outflows in December.

After a rough couple of months, hybrid funds inflows stabalised in December. The net inflows for hybrid funds stood at Rs 2,255.26 crore. Multi-asset Allocation funds saw the highest inflows worth Rs 1,711.42 crore.

Continuing with their winning streak, passive funds inflows stood at a whopping Rs 15,397.85. Only Gold ETFs saw outflows among the passive fund categories.N S Venkatesh, Chief Executive, AMFI said: “Investors will continue to invest in the India growth story through the mutual fund route over the near future. Investors are looking forward to a growth-oriented budget which should have a positive impact on the markets. The importance of investing in equity markets for the longer term goals is not lost on investors and the same is reflected in the ever-increasing awareness and adoption of SIP as a goal-linked route to create wealth over the long term. This month almost 24 lacs new SIPs were registered, which shows increasing investor belief in the instrument. SIPs are the simplest route to build a disciplined habit of regular investing.”