Get App
Last Updated : Feb 10, 2020 03:56 PM IST | Source:

AMFI monthly report: Equity funds inflows up 70% in Jan; mid-caps lead the way

Barring, contra fund category and dividend yield in the equity schemes category, all categories witnessed inflows in the month of January

The 43-player mutual fund industry witnessed inflows of Rs 7,548 crore in equity schemes in January, up 70 percent from December.

According to the data on the Association of Mutual Funds in India (AMFI), equity schemes had reported inflows of Rs 4,432 crore in December.

Barring, contra fund category and dividend yield in the equity schemes category, all categories witnessed inflows in the month of January.


In January, the contra fund saw outflows of Rs 735 crore, while dividend yields reported outflows worth Rs 63 crore of outflows.

Within the equity schemes, mid-cap funds category witnessed the highest inflows worth Rs 1,798 crore.

Fund managers attributed the inflows in the mid-cap space to attractive valuations and bottoming concerns in the mid-cap category.

“Mid-caps and smallcaps have seen significant price correction in the last 2 years and we are seeing attractive valuations and bottoming of growth concerns in the mid-cap space,” said a fund manager from a private fund house.

On the debt funds, credit risk funds continued to suffer with outflows of Rs 1,215 crore in January 2020 as against outflows of Rs 1,191 crore in December 2019.

"Credit default events in NBFCs are taking a toll on the credit risk funds. Investors feel more money will be lost if there is no recovery from the beleaguered companies. So investors are pulling out the money," said a head of fixed income from a private fund house.

The back-to-back downgrade of debt instruments from IL&FS and Dewan Housing Finance (DHFL), Reliance Home Finance by rating agencies has hurt credit risk funds since the troubles surfaced in June 2018.

On the other hand, in the same category, liquid funds that are used by companies to park surplus cash witnessed inflows of Rs 59,682 in January compared to outflows Rs Rs 71,158 crore in December.

Overall, the AUM of industry rose to 27.85 lakh crore in January as against 26.54 lakh crore a month ago.

" While, large-cap flows are steady, the inflows have been mostly in small-cap and mid-cap funds which have been heavily promoted by fund houses on the basis of a reversion trade. This augurs well for retail investor sentiment in the country, " Gaurav Rastogi, Founder & CEO,

AMFI data
Not sure which mutual funds to buy? Download moneycontrol transact app to get personalised investment recommendations.
First Published on Feb 10, 2020 02:00 pm
Follow us on