Equity mutual funds attracted Rs 39,688 crore in January, driven by sharp inflow in small and midcap schemes, even as market volatilities continued.
However, this was 3.5 per cent lower than the net inflow of Rs 41,156 crore registered in December.
The latest fund infusion by investors also marks the 47th consecutive month of net inflows into the segment.
Within the equity schemes, sectoral or thematic category attracted investors with the highest net inflow at Rs 9,016 crore, which is way lower than Rs 15,331 crore inflow seen in December, according to data released by Association of Mutual Funds in India (Amfi) on Wednesday.
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 data showed.
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 that they have generated over the last few years, Himanshu Srivastava, associate director- manager research, Morningstar Investment Research India, said.
“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 added.
The large schemes, which are being recommended by a slew of experts as a safer bet, saw inflows rising to Rs 3,063 crore in January from Rs 2,010 crore in December, while the large & midcap category saw infusion of Rs 4,123 crore, the Amfi data said.
Apart from equities, debt funds registered an inflow of Rs 1.28 lakh crore in January, against an outflow of Rs 1.27 lakh crore in December.
Gold exchange traded funds witnessed an inflow at Rs 3,751 crore.
The overall assets under management of mutual funds came at Rs 67.25 lakh crore as on January 31, 2025, higher than Rs 66.93 lakh crore in December 2024.
