Equity fund inflows slowed in January 2022
Equity funds saw a decline in inflows in January 2022, when they stood at Rs 14,887.77 crore, compared to Rs 25,082.54 crore in December 2021, mainly due to fewer new fund offerings (NFO).
Systematic Investment Plan (SIP) accounts, on the other hand, scored a record 5 crore during the month.
Assets under management (AUM) for share plans amounted to Rs 13,56,106.47 crore in January. Except for value and counter funds, all equity fund categories showed positive investment flows, according to data released by the Association of Mutual Funds in India (AMFI).
SIP accounts exceeded five crore after 26 lakh new accounts were added in January 2022.
With 26 lakh fresh accounts added, the number of SIP accounts exceeded 5 crore, for the first time in history. The growth is noticeable and obvious as the total SIP accounts for December 2021 were about 4.98 crore.
Debt funds witnessed an inflow of Rs 5,081.61 crore in January, a huge increase from the net outflow of Rs 49,037.52 crore it had recorded a month earlier in December 2021. Among all major debt funds, liquid funds saw an outflow of Rs 14,396.91 crore.
Even bank and government debt funds saw an outflow of Rs 2,537.22 crore. Inflows for Exchange Traded Funds (ETFs) last month stood at Rs 8860.97 crore. As for index funds, they saw an inflow of Rs 4,914.43 crore.
AMFI chief executive NS Venkatesh said January was a pretty good month as Indian equity markets haven’t adjusted that much compared to global equity markets, meaning positive outlook and inflows for the coming months.
This can also be attributed to the growing participation of retail investors in the market who believe in the Indian growth story, he added.
