Investment boost: AUM of mutual funds up Rs 2 lakh crore to Rs 52.74 lakh crore in Jan

Amid global slowdown, equity market depression, financial crisis, Indian investors have increased confidence in Indian stock market and mutual industries. Due to strong investment inflows, assets under management of mutual fund industries reached Rs.52.74 lakh crore at the end of January, which was Rs.50.78 lakh crore at the end of December.

Globally, the Indian equity market is in a strong position. Although the valuations of most companies are very high, mutual fund investors are investing heavily in the equity market, especially in the small and midcap segment, with the hope that the stock market will continue to boom. In the month of January, equity mutual funds made Rs. 21780 crores experienced a net investment inflow, representing the highest monthly investment in two years on average.

According to a report released by AMFI, December saw inflows of Rs 17,000 crore. Investments in January were the highest since March 2022 when equity-oriented mutual funds saw inflows of Rs 28,463 crore. Investment in equity funds has been positive for the 35th consecutive month. Equity segment has grown in all categories except value funds.

Investments in debt-oriented schemes also increased
In addition to equity, debt-oriented schemes saw a net inflow of Rs 76,469 crore in January after fund withdrawals in the previous two months. An outflow of Rs.75,560 crore was seen in December and Rs.4,707 crore in November.Furthermore, hybrid schemes saw an outflow of Rs. 20,637 crore was seen as an inflow.

Investment through SIP tops Rs 18,838 crore in month
Monthly Systematic Investment Plan (SIP) contribution has touched a new high of Rs 18,838 crore, surpassing December's Rs 17,610 crore. SIP accounts grew to 7.92 crore with a milestone of 51.84 lakh new SIP registrations in January. Despite January's volatility, equity mutual funds showed resilience. This continued confidence in equity MFs amid market volatility underscores investors' commitment to long-term wealth creation strategies.

Mutual funds approach RBI to increase investment limit in foreign stocks
Mutual funds are trying to increase the foreign investment limit. Some fund houses have approached the Reserve Bank for this. Market regulator Sebi had in June 2022 allowed mutual funds to invest in foreign stocks up to a limit of $7 billion (roughly Rs 58,000 crore). This step has been taken in view of the fall in stock markets across the world. But now the situation has changed, so the fund house wants to increase this limit. One proposal of mutual funds is that the foreign investment limit for them should be directly linked to the foreign exchange reserves in the country.