Equity MF Inflows Soar 14% To Rs 41,156 Cr In Dec

Mumbai: Inflows into mutual funds’ equity schemes increased by over 14 per cent on-month to Rs 41,156 crore in December, even as market volatilities continued. The small and midcap schemes of mutual funds continued to attract investor interest with inflows touching record highs during the month, despite the concerns being expressed about the two segments for the risk they portend, industry body Amfi said. Venkat Chalasani, chief executive of the Association of Mutual Funds of India (Amfi), attributed the decline to mark-to-market losses on corrections as well as outflows of Rs 1.27 lakh crore in debt schemes, which is in line with previous experience of a pull out at the end of a quarter.

Responding to a question on the continued interest in equity funds and what to expect in the future, Chalasani acknowledged that there are uncertainties which may influence the market, like the change in the US administration with Donald Trump as the President in January, but added that Indian investors continued to repose faith in the equity market. Pointing to the continued interest in SIPs, Chalasani said these inflows illustrate the optimism of the investors in the Indian markets over a long term.

“Culmination of NFOs, SIPs and lump sum purchase led to an increase in net sales numbers. Investor confidence on mutual funds are an efficient tool for investments continue to remain strong,” Kotak Mahindra AMC’s national head for sales, marketing and digital business Manish Mehta said.