Recording a net outflow of ₹9,253 crores in January, the outflow from equity mutual funds continued for the seventh month in a row.

Nearly all of the equity funds categories, except for mid-cap and thematic funds, logged an outflow with Flexi cap recording the highest outflow of ₹5,934 crores followed by large-cap and value funds logging an outflow of ₹2,853 crores and ₹1,640 crores. The outflow from Flexi-cap was mainly because of the waiver of exit load by mutual funds, as most of them converted their multi-cap fund to Flexi-cap, which led to a shift in basic attributes of the scheme. As per the SEBI norms, fund houses have to provide load free exit if the scheme’s attributes are changed. Excluding this, the sharp run-up in the market made the investors book profit on their long-term investment.

In contrast, mid-cap and thematic funds registered an inflow of ₹2,857 crores and ₹2,586 crores, respectively. The debt funds registered an outflow of ₹33,409 crores with the liquid funds recording an outflow of ₹45,316 crores alone. Overall, the asset under management of mutual funds was down at ₹30.50 lakh crore in January against ₹31.02 lakh crore as logged in December.