Gold exchange-traded funds saw a sharp surge in demand, with inflows more than doubling month-on-month to Rs 24,040 crore in January from Rs 11,647 crore in December.
New Delhi: Equity mutual funds attracted net inflows of Rs 24,028 crore in January, marking a 14 per cent decline from the previous month, according to data released by industry body Amfi on Tuesday.
This was the second consecutive month of moderation in equity inflows, as investor sentiment remained cautious amid subdued market conditions and ongoing geopolitical concerns.
Despite the slowdown in equity investments, the mutual fund industry’s overall asset base continued to expand. Total assets under management (AUM) rose to Rs 81.01 lakh crore in January from Rs 80.23 lakh crore in December.
Overall, the industry recorded net inflows of Rs 1.56 lakh crore during the month, recovering from net outflows of Rs 66,591 crore in December, supported by inflows across multiple fund categories.
Equity inflows softened sequentially from Rs 28,054 crore in December and Rs 29,911 crore in November, although they remained higher than Rs 24,690 crore recorded in October, data showed.
Within equity schemes, flexi-cap funds led inflows with net additions of Rs 7,672 crore, followed by mid-cap funds at Rs 3,185 crore and large and mid-cap funds at Rs 3,182 crore.
Large-cap funds attracted net inflows of Rs 2,005 crore, while small-cap funds saw inflows of Rs 2,942 crore. In contrast, equity-linked savings schemes (ELSS) witnessed net outflows of Rs 593.69 crore, reflecting some profit booking and tax-related adjustments by investors.
Gold ETFs
Meanwhile, gold exchange-traded funds saw a sharp surge in demand, with inflows more than doubling month-on-month to Rs 24,040 crore in January from Rs 11,647 crore in December.
Indian investors piled into gold exchange-traded funds in January as prices soared amid rising geopolitical risk, surpassing flows into equity funds for the first time, industry data showed on Tuesday.
Last month saw gold climb to record high levels, double where it traded in January 2024 in dollar terms, while investors in Indian equities held back as an agreement to reduce tariffs on Indian exports to the U.S. had yet to be reached.
Gold ETFs are easier to buy and hold than physical gold and India is one of the world’s biggest markets for the metal.
“We saw extreme volatility in the markets in January, particularly due to U.S. government’s intervention in Venezuela and imposition of new tariffs,” said Venkat Chalasani, chief executive at Association of Mutual Funds in India (AMFI).
“Key standout, however, were gold ETFs, with AUM rising nearly 50 per cent and monthly inflows exceeding those into the entire equity segment, pointing to the increasing financialisation of gold as an investment asset,” said Varun Gupta, CEO, Groww Mutual Fund.
Debt mutual funds also staged a turnaround, recording net inflows of Rs 74,827 crore in January after witnessing significant outflows of Rs 1.32 lakh crore in the previous month.
Himanshu Srivastava, Principal Research, Morningstar Investment Research India, said that flows remained constructive despite bouts of market volatility, supported by steady SIP contributions and continued confidence in the long-term structural growth prospects of Indian equities.
The moderation in overall inflows was largely driven by cooling momentum in the mid- and small-cap segments, he mentioned. Large-cap and focused funds also witnessed healthy traction in January, recording higher inflows compared with December.
SIP
Mutual fund Systematic Investment Plan (SIP) inflows reached Rs 31,000 crore in the month of January, second consecutive month when SIP inflows were Rs 31,000 crore or more, the data released by the Association of Mutual Funds in India (AMFI) showed on Tuesday.
In December, the SIP inflows stood at Rs 31,002 crore. SIP inflows increased by 17 per cent year-on-year, from Rs 26,400 crore in January 2025.
According to AMFI data, 7.4 million new SIP accounts were opened in January. Meanwhile, 5.5 million SIP accounts were closed during this period.
Furthermore, the total number of SIP accounts in the country increased to 102.9 million, up from 101.1 million in December.
The data further showed that SIP assets under management (AUM) declined to Rs 16.36 lakh crore in January from Rs 16.63 lakh crore in December. This is attributed to the market decline. SIPs account for 20.2 per cent of the overall mutual fund industry’s AUM.
According to the AMFI, investments in gold ETFs doubled to Rs 24,039.96 crore in January from Rs 11,647 crore in December. This indicates that people are prioritising safe investments like gold alongside the stock market.