IANS | 08 Feb, 2024
Inflows into equity funds in India surged to a 22-month high in
January, driven by investments into multi and smallcap schemes as the
markets scaled record highs, said Deepak Jasani, Head Retail Research at
HDFC Securities.
Net investment into equity and equity-linked
schemes surged 28 per cent over the previous month to Rs 21,780 crore in
January. SIP contribution to the mutual funds industry stood at a
record Rs 18,838 crore in January, compared to Rs 17,610 crore in
December, he said.
Akhil Chaturvedi, Chief Business Officer,
Motilal Oswal Asset Management Company, said that despite slight
volatility in January, the market closed flat on a month-on-month basis.
Sectoral/thematic
and smallcap oriented funds were the primary contributors, with
contributions of Rs 4,804 crore and Rs 3,256 crore, respectively.
However, this was lower than the previous month's flows. Multicap
category funds also witnessed a significant increase, reaching Rs 3,038
crore in January from approximately Rs 1,852 crores in December 2023.
Largecaps
demonstrated positive contributions this month, reversing the net
outflows experienced in December 2023. This shift in trend is in line
with valuation differentials among large v/s mid and small caps,
suggesting that large caps/flexi caps oriented schemes may attract
higher flows in the future, he said.
Kislay Upadhyay, Founder at
FidelFolio Investments, said while FPIs pulled out from equity in
January, domestic investors showed highest interest in January vs entire
FY24 - both in terms of number of folios and net inflows in equity.
Total
equity folios have increased by 3.3 per cent in January, the highest
growth in absolute and percentage terms in the last nine months.
Owing
to both higher inflows and lower outflows in January, net inflows have
increased to Rs 21,781 crore. This is up 28 per cent from December and
up 73 per cent from average inflow of last eight months. While FPIs
increased inflow in debt schemes, individual investors showed lower
interest as seen in reduction in number of folios in debt schemes.
Investors
still continue to be attracted towards smallcap funds with yet another
jump of 6 per cent in the number of folios. From 1.11 crore folios in
April 2023, smallcap folios jumped by 60 per cent to 1.78 crore in
January, Upadhyay said.
