The mutual fund industry’s assets under management (AUM) crossed a record Rs 81 lakh crore in January, reflecting steady investor participation despite market volatility, Zee Business Managing Editor Anil Singhvi said.
“Numbers are good. There is no problem as such. The mutual fund AUM has reached a record high of over Rs 81 lakh crore,” Singhvi said during the show Mutual Fund Ki Masterclass.
He said net inflows into the mutual fund industry stood at over Rs 1.5 lakh crore during the month, supported by strong flows into debt funds and exchange traded funds (ETFs).
Equity Moderates, Debt and SIPs Remain Steady
Equity fund inflows moderated in January. Investments into equity schemes came in at around Rs 24,000 crore, compared with about Rs 28,000 crore in the previous month. “About Rs 4,000 crore less came into equity funds compared to last month, which is fine. There is nothing to worry about,” Singhvi said.
Debt funds, however, saw higher inflows of around Rs 75,000 crore during the month.
Systematic Investment Plan (SIP) contributions remained steady at around Rs 31,000 crore for the second consecutive month. “SIP numbers are stable. Around 74 lakh new SIP accounts were opened, while about 55 lakh matured. The stoppage ratio is around 74 per cent, which is healthy,” he said.
Category Trends: Hybrid and ETFs Lead
Among equity categories, most segments saw lower inflows compared to December. Flexi-cap, mid-cap, small-cap and multi-cap funds witnessed moderation. Only large-cap funds saw a marginal rise in inflows to around Rs 2,000 crore.
Hybrid funds emerged as a preferred category. Multi-asset allocation funds received around Rs 10,500 crore. Arbitrage and balanced advantage funds also saw improved flows. “Hybrid funds are looking more favourable to investors at this stage,” Singhvi said.
ETFs were the standout performers. Gold ETFs saw inflows of around Rs 24,000 crore, more than doubling from the previous month. Silver ETFs also recorded sharp inflows of around Rs 9,400–9,500 crore.
“Gold and silver ETFs are the clear superstars of the month. For the first time, gold ETFs received more money than equity funds,” Singhvi said.
Budget and Regulatory Impact
On the Union Budget impact, Singhvi said there was no direct change in taxation of mutual funds but several indirect measures could affect returns.
He pointed to the increase in Securities Transaction Tax (STT) on futures and options. “STT on futures has increased sharply. This will reduce returns in arbitrage and equity savings funds by 20 to 35 basis points,” he said.
He added that special investment funds (SIFs) and long-short strategies may also see some impact due to higher transaction costs.
On Sovereign Gold Bonds (SGBs), Singhvi said tax rules have changed for bonds bought from the secondary market. “If you buy SGBs from the market after April 1, 2026, capital gains tax will apply. If you bought directly from RBI and hold till maturity, there is no issue,” he said.
He also highlighted a reduction in Tax Collected at Source (TCS) on foreign remittances for education, medical treatment and overseas travel from 5 per cent to 2 per cent. “This is a positive procedural change for those sending money abroad,” he said.
Trade Deal Outlook
On the India-US trade deal, Singhvi said it is a “game changer” for markets and positive for equity funds. Export-oriented sectors such as textiles, chemicals and auto ancillaries are expected to benefit.
He identified three sectoral funds that could gain from the trade deal: SBI Automotive Opportunities Fund, ICICI Exporters and Services Fund, and HSBC India Export Opportunities Fund.
Anil Singhvi Mutual Fund Picks
For “Fund of the Month”, Singhvi selected a small-cap fund. He said small-cap indices are still around 12–13 per cent below their lifetime highs, while the Nifty is close to record levels.
“Small-cap stocks have corrected both in price and time. If you have a seven to 10-year horizon and can take a higher risk, this is a good time to start investing gradually,” he said.
He named Bandhan Small Cap Fund as his preferred choice, citing its assets of around Rs 19,000 crore and three-year returns of nearly 30 per cent.
Among new fund offers (NFOs), Singhvi favoured Kotak Services Fund, saying the services sector could benefit from the trade deal.
He also spoke about gifting mutual fund units, especially ahead of Valentine’s Day. “You can gift mutual fund units easily if the recipient has a PAN and KYC. There is no tax at the time of gifting. Tax applies only when the units are redeemed,” he said.
