Investors’ interest in large-cap mutual funds increased, investment reached 19-month high in January

By Sudhakar Yadav February 11, 2024 4:50 PM IST
Mutual Fund- India TV Paisa
Photo:FILE mutual fund

freshman year Investor interest in large-cap mutual funds has increased rapidly. Investors have invested Rs 1,287 crore in large-cap mutual funds (funds investing in large stocks) in January. This is the highest level of investment in 19 months. The surge in funds from small and medium companies has prompted them to book profits and their investments in large-caps have increased. Earlier in December 2023, he had made a net withdrawal of Rs 281 crore from the large-cap fund. The current level of investment is 80 percent more than the figure of Rs 716 crore in January last year.

Withdrawing money from small and mid cap

After this latest investment, the asset base of mutual funds investing in large stocks increased by 26 percent to Rs 3 lakh crore in January, from Rs 2.38 lakh crore a year ago. Equity mutual funds focused on large-caps received inflows of Rs 1,287 crore in January, according to the latest data from the Association of Mutual Funds in India (Amfi). This is the highest level since July, 2022 at Rs 2,052 crore. Kaustubh Belapurkar, Director-Manager Research, Morningstar Investment Research India, said that investors in mutual funds investing in small and medium companies are reaping profits and reinvesting them in large cap funds.

Record investment in equity mutual funds

There has been a net investment of Rs 21,780 crore in equity mutual funds in January 2024. This is the highest monthly investment in any month in almost two years. During this period, investors continued to give preference to small-cap funds. This information has been received from the data released by the Association of Mutual Funds in India (AMFI). In December 2023, there was an investment of about Rs 17,000 crore in this category. Investment inflows in January were the highest since March 2022. Rs 28,463 crore was invested in equity mutual funds in March, 2022. Latest data shows that equity funds have been receiving net inflows for 35 consecutive months. Barring value funds, all categories of the equity segment saw net inflows in the month under review.

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