Equity Mutual Fund Investments Drop 40%: Is Investor Fatigue Setting In?

• Monthly equity mutual fund investments fell by 40% in January compared to July 2025's record high, from Rs 42,702 crore to Rs 24,028 crore.
• Market experts attribute the slowdown to 'investor fatigue' due to prolonged market volatility and limited returns, rather than a loss of confidence.
• Gold ETFs saw a significant surge, with investments reaching Rs 24,040 crore in January, nearly matching equity flows.
• Despite the decline in lump-sum investments, Systematic Investment Plans (SIPs) remain strong, surpassing Rs 31,000 crore monthly, indicating long-term retail commitment.
• Experts emphasize that equities remain the preferred asset class for long-term wealth creation, with gold serving as a diversification tool.