Equity Mutual Fund Inflows Jump 25% In February To Highest In Nine Months: AMFI Data

Net investments in equity and equity-linked schemes increased 25% from the previous month to Rs 15,685.57 crore.

<div class="paragraphs"><p>(Source:&nbsp;<a href=";utm_medium=referral&amp;utm_content=creditCopyText">Josh Appel</a> on <a href=";utm_medium=referral&amp;utm_content=creditCopyText">Unsplash</a>)</p></div>
(Source: Josh Appel on Unsplash)

Inflows into equity mutual funds rose to the highest nine months in February, aided by investments in sectoral and small-cap funds.

Net investments in equity and equity-linked schemes increased 25% from the previous month to Rs 15,685.6 crore, according to data released by the Association of Mutual Funds in India. That's the highest since May 2022. Inflows have now continued for 24 straight months.

The S&P BSE Sensex and the NSE Nifty 50 declined 1.25% and 1.77%, respectively, in February.

SIP Contribution

SIP contribution fell to Rs 13,686.3 crore in February versus Rs 13,856.2 crore in January.

The number of SIP accounts reached 6.28 crore, compared to 6.21 crore in January.

"There is this negative of Rs 169.90 crore which is mainly because, in February you have only 28 days. Generally SIPs have last three days of inflows coming in, so the three days inflows will get reflected in the March number," Chief Executive Officer NS Venkatesh said in a media call.

Venkatesh said the overall month has been "reasonably okay". The negative flows in debt funds are as per expectations, while the positive numbers in equity funds is a "good trend".

"People are reposing more faith in the equity market and the retail investors have chosen equity funds including small, mid and large caps as their preferred choice of investing," Venkatesh added.

Category-Wise Trends

All equity mutual fund schemes witnessed net inflows in February.

Among equity funds, sectoral/thematic funds saw the highest investments, followed by small-cap funds, while large-cap funds saw the least.

Debt Funds

Liquid funds, used by companies to store short-term cash, registered outflows for the third straight month in January.

Credit-risk funds also witnessed outflows for the 15th straight month in February.

Net flows

Money market funds saw outflows worth Rs 542.4 crore in February, compared with inflows worth Rs 6,460 crore in January.

The average assets under management stood at Rs 40.69 lakh crore in February versus Rs 40.80 lakh crore in January. Net AUM fell to Rs 39.46 lakh crore in February, compared to Rs 39.62 lakh crore the previous month.