SIP contributions cross Rs 18,000-crore mark

financialexpress.com:

Net inflows into open-ended equity mutual funds (MFs) saw a 28% jump in January over December, data from the Association of Mutual Funds in India (AMFI) showed on Thursday.

In another feather in the cap for the industry, SIP (systematic investment plan) contributions crossed the Rs 18,000-crore mark for the first time to scale an all-time high of Rs 18,838.33 crore.

Equity funds saw net inflows of Rs 21,781 crore in January, up from the Rs 16,997 crore in December. This was powered by a strong Rs 3,256.98 crore net inflows into small-cap funds, Rs 4,804.69 crore into sectoral/thematic funds, and Rs 3,038.67 crore in multi-cap funds.

“Both the mid-cap and the small-cap indices have seen a sharp rally over the last six months and one year. Investors should note that while both the mid-cap and small-cap categories have the potential to deliver good returns, they are inherently volatile with sharp drawdown risks,” said Melvyn Santarita, analyst, Morningstar Investment Research India.

Debt funds saw net inflows of Rs 76,468.96 crore, mainly on account of near-Rs 50,000 crore inflows into the liquid category, compared to Rs 75,500 crore in net outflows last month.

“The inflows into the corporate bond, long-duration, gilt, and long-to-medium duration categories confirm that investors are now taking bets in these categories, fuelled by growing anticipation of interest rate easing,” said Nehal Meshram, senior analyst – manager research, Morningstar Investment Research India.

Though small-cap funds garnered more than Rs 3,000 crore of net flows for the fourth consecutive month, the quantum was lower by Rs 600 crore on a month-on-month basis. Interestingly, fund flows into the large-cap category at Rs 1,287 crore, which was at the