🟩 Indian Equity Mutual Fund Inflows Ease for Second Straight Month in January
Inflows into Indian equity mutual funds declined for the second month in a row in January 2026, reflecting cautious investor sentiment as markets faced geopolitical and trade uncertainties. While flows remain positive, the moderation highlights a short-term shift in preference toward safer or alternative assets.
Key Facts:
• Equity mutual fund inflows dropped 14.35% month-on-month to ₹240.29 billion (≈ $2.65 billion) in January.
• Foreign portfolio investors pulled about $4 billion from Indian equities during the month.
• Major benchmarks Nifty 50 and Sensex both fell in January, alongside small- and mid-cap stocks.
• Systematic Investment Plan (SIP) contributions held steady above ₹31,000 crore, showing ongoing long-term investor participation.
Expert Insight:
The two-month moderation in equity mutual fund inflows suggests short-term caution among investors, potentially driven by risk aversion amid global and domestic uncertainties. However, steady SIP inflows indicate that long-term investment discipline remains intact.
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