Flows into equity funds slowed in the past few months, even as monthly contribution of systematic investment plans (SIPs) continued to remain strong. According to market participants, the slowdown of inflows into mutual funds were due to weak returns from equity funds and banning of upfront commission by the markets regulator.
Equity mutual funds witnessed inflows of Rs 4,442 crore in December, the lowest in the past 27 months. Equity funds includes equity funds, arbitrage funds and equity linked saving schemes (ELSS).