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Investors' Interest in Mutual Funds Remains Steady: SIP Investments Cross ₹26,000 Crore in January 2025
Investor confidence in mutual funds continues to hold strong. In January 2025, investments through Systematic Investment Plans (SIPs) surpassed ₹26,000 crore, reflecting sustained enthusiasm for disciplined, long-term wealth creation. Alongside this, the Assets Under Management (AUM) of open-ended mutual funds also saw an upward trend.
SIP Investments Reach ₹26,400 Crore in January 2025
The SIP investment for January 2025 stood at ₹26,400 crore, maintaining its robust streak from December 2024, when it was ₹26,459 crore. This marks the second consecutive month where SIP investments remained above ₹26,000 crore. Such figures underscore that investors are committed to systematic investing in the stock market, ensuring financial discipline and long-term wealth accumulation.
Open-Ended Mutual Fund Investments Surge to ₹1.87 Lakh Crore
The total investments in open-ended mutual funds for January 2025 reached ₹1.87 lakh crore, witnessing a significant jump from ₹80,509 crore in December 2024. This increase signals a growing investor preference for mutual funds.
As a result, the total AUM of open-ended mutual funds also grew to ₹66.98 lakh crore, up from ₹66.66 lakh crore in December, reflecting a 0.49% rise. This steady growth highlights investors' continued reliance on mutual funds as a reliable investment avenue.
Equity Mutual Funds Investment Trends
Equity mutual funds received a total inflow of ₹39,687 crore in January 2025. While this figure was slightly lower than ₹41,155.9 crore in December 2024, it still indicates a strong interest in equity investments.
Breakdown of Equity Fund Investments
Large Cap Funds: Investments rose to ₹3,063.3 crore in January, up from ₹2,010.9 crore in December.
Mid Cap Funds: Investors showed steady interest, with ₹5,147.8 crore invested in January, slightly higher than ₹5,093.2 crore in December.
Small Cap Funds: Small-cap funds continued to attract investments, reaching ₹5,721 crore in January, up from ₹4,667.7 crore in December.
The figures suggest that investors are still keen on growth-oriented equity investments, despite market fluctuations.
Record Inflows in Debt Mutual Funds
Debt mutual funds witnessed a record-breaking investment in January 2025. A total of ₹1.28 lakh crore was invested in this category, marking a dramatic turnaround from December 2024, when investors withdrew ₹1.27 lakh crore.
This shift signals renewed trust in debt instruments, possibly driven by stable interest rates and attractive yields in the fixed-income segment.
Investment in Hybrid Funds Doubles
Investor interest in hybrid funds also saw a sharp increase. Investments in hybrid mutual funds doubled in January, reaching ₹8,767.5 crore, compared to ₹4,369.8 crore in December.
Arbitrage Funds Lead Hybrid Category
Among hybrid funds, the highest investment was in arbitrage funds, which received ₹4,291.7 crore in January. Interestingly, in December, the top choice was Multi-Asset Allocation Funds, but arbitrage funds took the lead in January, showcasing evolving investor preferences.
Rise in Mutual Fund Folios Reflects Growing Investor Participation
The mutual fund industry is witnessing an influx of new investors. The number of mutual fund folios increased to 22.91 crore in January, up from 22.50 crore in December 2024.
This consistent rise indicates that more retail investors are embracing mutual funds as a wealth-building tool, driven by better financial awareness and trust in the market.
