Equity Mutual Funds See 13.6% Inflow Surge in December

MUTUAL-FUNDS

Overview

Actively managed equity mutual funds attracted Rs 28,054 crore in December, marking a 13.6% increase from November's Rs 24,690 crore. This growth was propelled by strong inflows into Flexi-cap funds, which reached Rs 10,019 crore. However, the overall mutual fund industry experienced a significant net outflow, highlighting a diverging trend in investor sentiment.

Equity Fund Inflows Climb Amidst Industry Outflows

Actively managed equity mutual funds posted a robust Rs 28,054.06 crore inflow in December. This figure represents a 13.6% increase compared to the Rs 24,690.33 crore recorded in November, according to data from the Association of Mutual Funds in India (AMFI).

The surge in equity fund investments occurred against a backdrop of substantial outflows from the broader mutual fund industry. The industry as a whole saw a net outflow of Rs 66,591 crore in December, a stark contrast to the Rs 32,755 crore inflow registered in the prior month.

Category Performance Varied

Flexi-cap funds emerged as the top performer, drawing Rs 10,019 crore in inflows, up from Rs 8,135 crore in November. This indicates a strong investor preference for flexible mandates in the current market environment.

Other equity categories showed mixed results. Large-cap funds saw a slight dip, attracting Rs 1,567 crore versus Rs 1,640 crore previously. Mid-cap funds recorded Rs 4,176 crore, down from Rs 4,487 crore, and small-cap funds attracted Rs 3,824 crore compared to Rs 4,407 crore in November.

Sectoral Funds Decline

Inflows into sectoral and thematic funds experienced a significant 49% drop. These categories collectively garnered Rs 946 crore in December, a sharp decrease from the Rs 1,865 crore seen in the preceding month. This suggests investors are becoming more cautious about concentrated bets on specific sectors.

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