MUMBAI: Equity mutual fund inflows rose 72% to touch a four-month high of Rs 12,546 crore in January, helped by record systematic investment plans (SIPs) inflows, as per the latest figures released by the Association of Mutual Funds in India (AMFI) on Thursday. Equity mutual funds had seen Rs 7,303 crore inflows in December 2022.
SIP inflows reached a new high of Rs 13,856.18 crore in January compared to Rs 13,573.08 crore in December. This was the fourth consecutive month when SIP flows remain remained above Rs 13,000 crore mark. The number of SIP accounts reached 6.21 crore, compared to 6.12 crore in December. Total 22.65 lakh new SIPs were registered in January.
Equity schemes have seen inflows in all the categories and smallcap schemes emerged as the most preferred category with a net inflow to the tune of Rs 2,255 crore, followed by midcap (Rs 1,962 crore), and large & midcap (Rs 1,902 crore).Mutual fund folios crossed all-time high at 14.28 crore at the end of January.
“Smallcaps have witnessed inflows, majorly driven by the retail investors as their investment is for long-term return cycle. Encouraging SIP numbers indicates retail investors’ trust in mutual funds. We believe that SIP inflow momentum has and will continue to balance the FII outflows in the market,” said N S Venkatesh, chief executive, AMFI.
“The importance of investing in equity markets for the long term goals through SIP as a goal-linked route to create wealth is gaining awareness. This month almost 23 lakh 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,” he added.