Equity mutual funds see inflows in January; Debt funds witness outflows

Equity mutual funds saw inflows in January. The total inflows surged 72%, showed monthly Amfi data. Equity mutual funds witnessed a total inflow of Rs 12,546.51 crore in January, compared to Rs 7,303.39 crore in December. The debt mutual fund category witnessed net outflow of Rs 10,316.15 crore in January. The category witnessed total outflow of Rs 21,946.73 crore in December. The total assets under management (AUM ) in January stood at Rs 39.62 lakh crore, compared to Rs 39.88 lakh crore in December.

Small cap funds lead the inflow chart. Small cap funds received total inflows of Rs 2,255.85 crore. The second in the list was large & mid cap funds that witnessed an inflow of Rs 1,901.99 crore. Dividend Yield Funds witnessed poor inflows in January. The category saw inflow of Rs 2.18 crore

Money market funds, ultra short duration funds, long duration funds, gilt funds with 10-year constant duration saw inflows in January. Money market funds witnessed the highest inflows of Rs 6,459.99 crore. On the other hand, liquid funds saw the highest outflows of Rs 5,041.68 crore, followed by short duration funds which saw outflows of Rs 3,858.73 crore. Very short term debt funds typically see outflows at the end of the financial year as many companies redeem their short-term investments for tax payments.

The hybrid category witnessed inflows of Rs 4,491.97 crore. All hybrid schemes except for the dynamic asset allocation/balanced advantage funds and equity savings funds witnessed inflows. Dynamic asset allocation/balanced advantage fund and equity savings funds saw outflows of Rs 217.83 crore and Rs 90.77 crore respectively. Multi asset allocation funds attracted total inflows of Rs 2,181.69 crore, followed by arbitrage funds that attracted inflows of Rs 2,054.59 crore.

Passive funds attracted inflows of Rs 3,954.59 crore. The ETFs category was not able to gain investors attention and witnessed outflows. Other ETFs witnessed outflows of Rs 1,708.96 crore and Gold ETFs witnessed outflows of Rs 199.43 crore