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Below the Quote on AMFI Data by Kislay Upadhyay, smallcase Manager, Founder - FidelFolio Investments

Domestic Investors March to a Different Beat: Counterflow to FPIs in January Equity Funds:

While FPIs pull-out from equity in January, domestic investors show highest interest in Jan vs entire FY24 - both in terms of number of folios and net inflows in equity. Total equity folios have increased by 3.3% in Jan 2024, highest growth in absolute and % terms in the last 9 months. Owing to both higher inflows and lower outflows in Jan, net inflows have increased to ?21,781cr. This is up 28% from Dec and up 73% from average inflow of last 8 months. While FPIs increased inflow in debt schemes, Individual investors show lower interest as seen in reduction in number of folios in debt schemes.

However, corporate domestic investors in debt schemes go in tandem with FPIs resulting in heavy inflow of ?76,469cr in Jan. However, this can be seen as merely reversing the outflow ?75,560  in Dec. However, average equity AUM growth was moderate owing to lower return in Jan due to massive outflow from FPI. Popularity of multicap funds have been mirrored by investors also (6% mom increase in number of folios). Investors still continue to be attracted towards smallcap funds with yet another jump of 6% in number of folios. From 1.11cr folios in April2023, smallcap folios have jumped by 60% to 1.78cr in Jan. Fund houses continue launching more multicap funds and Passives in January. Smallcap fund launches has taken a halt for the first time in 3 months. Multicap fund launches have a theme most of 2023 also.

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