Mutual fund inflows rebounded in January as investors pumped in Rs 1.06 lakh crore after a record outflow in the previous month.
Inflows from equity and equity-linked scheme in January still declined 4 percent month-on-month to Rs 15,390 crore, according to data from the Association of Mutual Funds in India. Balanced funds saw a 21 percent fall in net inflows at Rs 7,665 crore.
The equity inflows are slightly lower due to booking of gains ahead of the Budget, said Sunil Subramaniam, chief executive officer at Sundaram Mutual Fund. The jump in overall inflows reflects the rebound in liquid schemes after a pullout at the end of December quarter by institutions, he said.
“Inflows through systematic investment plans remain strong, accounting for 40 percent of the net flows into pure equity,” Subramaniam said. “Equity-linked savings schemes show a healthy and an expected rise to Rs 2,000 crore.”
Overall inflows into all schemes recovered from a net outflow of Rs 1.64 lakh crore in December.
Money flowing into equities shows confidence and trust of investors toward equity as an asset class that generate above-inflation (returns).Jinesh Gopani, Head (Equities), Axis Mutual Fund
Assets Grow
Total assets under management grew 5 percent to Rs 22.4 lakh crore for December as against Rs 21.37 lakh crore in December.
Liquid or money market assets grew the most by 28 percent to Rs 3.8 lakh crore month-on-month, while equity assets grew 2 percent at Rs 7.86 lakh crore. Balanced funds' assets rose 5 percent to Rs 1.76 lakh crore.
The first month of 2018 saw volatility coming back to the markets with India Volatility Index, or VIX, gaining more than 25 percent and the Nifty surging 4.7 percent. Foreign investors pumped in nearly Rs 13,000 crore, while domestic institutions invested Rs 400 crore.
Also Read: What India's Top Three Mutual Funds Bought And Sold In December
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