100 per cent Growth in Sectoral Funds Net Inflows and a 70 per cent Decline in ELSS Category – Check Out the AMFI Data Trends That Could Change Your Investment Strategy!
In December 2024, equity mutual funds saw inflows of Rs 41,155 crore, compared to Rs 35,943.4 crore in the previous month, marking a 14.49 per cent increase.
In December, equity mutual funds (MFs) experienced a 14.5 per cent rise in inflows, according to data published on Thursday by the Association of Mutual Funds in India (AMFI). In December 2024, equity mutual funds saw inflows of Rs 41,155 crore, compared to Rs 35,943.4 crore in the previous month, marking a 14.49 per cent increase.
DSIJ offers a service 'Pop Stock" with recommendations for intraday trading based on research and analysis to help subscribers make healthy profits. If this interests you, then do download the service details pdf here
Performance Across Categories:
- Small-Cap Funds recorded a notable growth of 13.52 per cent, with AUM increasing to Rs 4,667.70 crore. This showcases the strong interest in smaller companies with high growth potential.
- Sectoral/Thematic Funds emerged as a top performer, with AUM doubling, showing a growth of 100.21 per cent. These funds benefit from concentrated sector-specific strategies.
- Dividend Yield Funds experienced a 28.54 per cent increase, indicating investor preference for funds focusing on dividend-paying companies.
- Mid-Cap Funds achieved a modest growth of 4.30 per cent, reflecting stable interest in mid-sized companies.
- Focused Funds grew by 5.99 per cent, underscoring targeted investment strategies' appeal.
Categories Facing Declines:
- ELSS Funds saw the most significant drop of -69.61 per cent, with AUM declining to Rs 187.98 crore. Tax-saving funds seem to have faced reduced inflows.
- Value/Contra Funds witnessed a -27.50 per cent drop, reflecting reduced preference for contrarian strategies.
- Large-Cap Funds, Multi-Cap Funds, and Large & Mid-Cap Funds declined by -21.07 per cent, -15.20 per cent, and -18.55 per cent, respectively, hinting at reduced investor confidence in larger companies.
Flexi Cap Funds:
Flexi Cap Funds, with their flexibility to invest across market caps, declined by -6.95 per cent, showing a tempered interest despite their broad scope.
Conclusion:
The AMFI data highlights diverse trends in equity mutual funds, with sectoral/thematic funds leading in growth, while traditional categories like ELSS and large-cap funds face challenges. Understanding these trends is vital for aligning investment strategies with market dynamics.