BENGALURU, Jan 10 Reuters Inflows into Indian equity mutual funds more than tripled to 73.03 billion rupees 888.74 million in December 2022 from the previous month, data from the Association of Mutual Funds in India AMFI showed.

The inflows came despite the broader indexes, NSE Nifty 50 and SP BSE Sensex, seeing a selloff to the tune of nearly 4 in December.

The recovery in equity mutual fund inflows is a vindication that equities will be the preferred asset class for mutual fund investors, said N.S. Venkatesh, chief executive officer of AMFI.

Inflows had tanked nearly 76 in November to 22.58 billion Indian rupees, hitting a 21month low.

Smallcap funds accounted for most of the investments at 22.45 billion rupees. Largecap funds saw outflows falling to 0.26 billion rupees, compared to outflows of 10.39 billion rupees in the previous month.

Domestic investors latched on to smallcap equity funds as the segment became attractive due to recent correction, from an entry point of view, said Venkatesh.

Contributions to systematic investment plans SIPs where investors make periodic, equal payments into a mutual fund rose for the fifth consecutive month to a record 135.73 billion Indian rupees 1.65 billion in December, data showed.

Liquid funds funds that mature in 91 days saw outflows of 138.52 billion rupees, according to AMFI.

It39;s natural to see outflows from liquid funds at the end of a year, as corporates use the funds to pay advance tax for the year,…