Equity Mutual Funds Attract Rs 39,688 Crore Inflows In January Despite Market Volatility

New Delhi: Driven by sharp inflow in small and midcap schemes, equity mutual funds attracted Rs 39,688 crore in January despite the continuation of market volatility. However, this was 3.5 per cent lower than the net inflow of Rs 41,156 crore registered in December 2024. The latest fund infusion by investors also marks the 47th consecutive month of net inflows into the segment, PTI reported.

According to data released by the Association of Mutual Funds in India (Amfi) on Wednesday, the sectoral or thematic category attracted investors with the highest net inflow at Rs 9,016 crore, which is way lower than the Rs. 15,331 crore inflow seen in December within the equity schemes.

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Data showed that the midcap category saw an inflow of Rs 5,148 crore in January 2025, while the smallcap category saw an infusion of Rs 5,721 crore. The small and midcap schemes of mutual funds continued to attract investors with inflows highlighting their preference for these segments largely driven by the high returns they have generated over the last few years, according to Himanshu Srivastava, Associate Director- Manager Research, Morningstar Investment Research India.

Equity inflows at ₹39,688 crore

"Since both the segments witnessed sharp correction, investors would have chosen to make use of this opportunity and enhance their exposure to these segments," he said.

The large schemes recommended by a slew of experts as a safer bet saw inflows rising to Rs 3,063 crore in January 2025 from Rs 2,010 crore in December 2024, while the large & midcap category saw an infusion of Rs 4,123 crore, as per the Amfi data.

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Debt funds also registered an inflow of Rs 1.28 lakh crore in January, against an outflow of Rs 1.27 lakh crore in December last year, while Gold exchange-traded funds saw an inflow of Rs 3,751 crore. The overall assets under management of mutual funds came at Rs 67.25 lakh crore as of January 31, 2025, higher than Rs 66.93 lakh crore in December 2024.