MF investors pivot to safety of largecap stocks amid market slide

Investors in Indian mutual funds pivoted towards the safety of largecap stocks and gold exchange traded funds (ETF) in January as markets turned volatile, data released on Wednesday showed.

- Reuters

Inflows into mutual fund schemes investing in largecap stocks jumped 52.3% to ₹3,063 crore in January, the second-highest monthly inflow on record, according to data by the Association of Mutual Funds in India (AMFI).

Gold ETFs witnessed the highest monthly inflows ever in January at ₹3,751 crore, the data showed.

Overall inflows into equity mutual funds declined 3.6% month-on-month to ₹39,688 crore ($4.57 billion) from 41,156 crore in December 2024.

Investments in local mutual funds have held steady so far, totaling $18.42 billion since October 2024 and helping stabilize markets as foreign investors withdrew ₹1.8 lakh crore ($20.72 billion).