Retail investors continued to pump money into Indian equities via mutual funds during January despite the country's stock market's high volatility and general unrest. Small cap funds attracted net inflows of nearly £225 million, the highest amount among all equity schemes, and monthly inflows into mutual fund schemes via the systematic investment plan (SIP) route reached a new all-time high of £1.38 billion as a result, data released by fund industry trade body Amfi showed.
According to Amfi chief executive N S Venkatesh, the most recent market data reveals an upward trend in equities in MF flows. Small-cap funds have seen inflows, primarily from retail investors because they are making long-term investments. “Encouraging SIP numbers indicate retail investors’ trust in mutual funds. We believe that SIP inflow momentum has and will continue to balance out the FII outflows in the market,” Venkatesh said. “(January) showed almost 23,00,000 new SIPs being registered, which indicates increasing investor belief in the instrument.”
According to Amfi data, monthly SIP flows initially exceeded £ .3 billion in October of last year and have remained over that amount for the past four months. The overall intake through the SIP method since January of last year has been close to £7.94 billion.
On the other hand, net selling by foreign portfolio investors (FPIs) from the stock market in 2022 was at £12 billion, while in January this year it was about £ 2.88 billion, according to CDSL data.