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MF inflows stay Robust in Jan 2025 despite trending down market

ICICIdirect Research 14 Feb 2025 DISCLAIMER

Inflows including NFOs in Jan 2025 remained at similar higher level like last month at Rs 40000 crore Vs Rs 41200 crore in December.

Ex-NFOs, inflows were higher at Rs 36000 crore Vs Rs 30000. Inflows in January is second highest ever after October 2024 (Rs 38000 cr). Trend of fall in markets is leading to higher inflows continues as markets witnessed sharp fall in October’24 and January’25.
All category of funds saw higher inflows MoM. Largecap: 3000 Vs 2000, Multicap: 3600 Vs 3000, Large & Mid: 4100 vs 3800, ELSS: 800 Vs 200.

Inflows in Midcap and Smallcap funds came at all-time high levels at Rs 5150 crore (5100 in Dec) in Midcap and Rs 4700 crore (Rs 4700 in Dec) in Smallcap.

SIP inflows remain strong, just marginally down at Rs 26400 crore Vs Rs 26459 crore.

In last few years (including election result fall in May 2024), the recovery after the fall has been sharp and therefore investors are not yet tested with time-wise correction. SIP discontinue ratio has crossed 100% for the first time since covid in January 2025 resulting in net cancellation. In January, 5 lakh SIP got cancelled as we added: 56.19 lakh sip, while 61.33 lakh SIPs were discontinued. The same resulted in SIP inflows marginally lower to 26400 crore vs 26459 crore. However, the base is very big now with 10.27 crore live SIP account. Around 6 crore new SIPs registered in FY25 and 8 crore in last 2 years.

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