Equity flows in January 43% lower than 12-month average, hit two-year low

The mutual fund (MF) industry witnessed deceleration in equity inflows for a third straight month in January. The flows into equity schemes, which includes tax-saving schemes, stood at Rs 6,158 crore last month. This was the lowest tally since February 2017. Equity inflows in January were 42 per cent lower compared to last 12-month average of Rs 10,594 crore.

Market players say volatility in the broader market and sharp sell-off in indebted companies could have hurt investor sentiment.

"The monthly data shows there are reasons to be worried on the equity side. Of the Rs 6,000 crore of equity flows,