Inflows into India's equity mutual funds declined slightly in January from the previous month, as a drop in buying in the sectoral and thematic funds overpowered rising traction of largecaps, data released on Wednesday showed.

The 35.2% yoy growth in mutual fund folios in January 2025 is slightly lower than the previous month, due to SIP closures

Value stocks, typically undervalued at the time of purchase but with strong fundamentals and growth potential, are often contrasted with growth stocks, which focus on companies with significant future growth prospects.

Investors' confidence in equity mutual funds remains strong with the segment attracting Rs 39,688 Crore in January, driven by sharp inflow in small cap and flexi-cap schemes, even as market volatilities continued.

Equity Mutual Fund inflows declined marginally by 3.6% in January 2025, settling at Rs 39,687.78 crore compared to Rs 41,155.91 crore in December 2024, data released by the Association of Mutual Funds in India (AMFI) on February 12 showed.