last During December, investment in equity mutual funds declined by 6 percent on monthly basis to Rs 28,054 crore. This information has been received from the latest data of AMFI. Along with the decline in equity investment, the AUM of the mutual fund industry declined from Rs 80.80 lakh crore in November to Rs 80.23 lakh crore in December. This shows the impact of huge withdrawals from debt schemes. Venkat N., CEO of Association of Mutual Funds of India (AMFI). “The decline in industry AUM was primarily due to outflows from bonds and fixed income funds for cash management and limited market-related price movements,” Chalasani said.
Investors withdrew Rs 66,591 crore in December
According to Amfi data, the mutual fund industry reported net outflows of Rs 66,591 crore in December. This was mainly due to huge outflows from fixed income schemes, while equity and gold funds continued to attract investors. Equity investment, although sequentially moderated from Rs 29,911 crore in November, was still higher than Rs 24,690 crore in October. Net investment in equities stood at Rs 30,421 crore in September and Rs 33,430 crore in August. Despite intermittent market volatility, inflows into equities remained steady. This was supported by the steady contribution of SIP.
Investment of Rs 31,000 crore came in SIP
Retail investors’ participation through SIPs increased from Rs 29,445 crore in November to a record high of Rs 31,000 crore in December. Firoz Aziz, Joint CEO, Anand Rathi Wealth, said, “The data shows that investors have used the market decline as an opportunity to invest continuously. The total SIP contribution in FY 2024-25 stood at Rs 3.34 lakh crore, reflecting long-term intention and confidence rather than short-term speculation.
Flexi cap funds remain the preferred option
Most of the sub-categories, except Dividend Yield and Equity Linked Saving Scheme (ELSS) funds, saw a positive trend in December. Flexi cap funds remained the most preferred option. There was a net investment of Rs 10,019 crore, which is more than Rs 8135 crore in November. This reflects their increasing appeal in uncertain market conditions. After this, Rs 4176 crore was invested in mid-cap funds, Rs 4094 crore in large and mid-cap funds and Rs 3824 crore in small-cap funds. Apart from this, investment of Rs 1567 crore came in large-cap funds.
Record investment in gold ETF
In contrast, ELSS and dividend yield funds recorded outflows of Rs 718 crore and Rs 254 crore, respectively. On the other hand, fixed income mutual funds saw huge outflows of Rs 1.32 lakh crore in December, while net outflows in November stood at Rs 25,693 crore. Because of this the entire industry went into negative. Apart from this, investors also showed renewed interest in safe investment options. Net investment in gold ETFs increased to Rs 11,647 crore in December, which is much higher than Rs 3742 crore in November and Rs 7743 crore in October.
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