Equity Mutual Funds Inflows Plummet Amidst Market Uncertainty

In February, inflow in equity mutual funds decreased by 26% to Rs 29,303 crore, impacted by reduced investments in small and midcap schemes amidst market volatility. Despite this, sectoral and thematic funds saw the highest net inflows. Debt funds, however, experienced an outflow of Rs 6,525 crore.

In February, investments in equity mutual funds took a substantial hit, dropping by 26% to Rs 29,303 crore. The downturn is chiefly due to diminished investments in small and midcap schemes amid ongoing market turbulence.

Data from the Association of Mutual Funds in India revealed that this February marked the second consecutive month of decreased inflow, contrasted with Rs 39,688 crore in January and Rs 41,156 crore in December. However, sectoral and thematic funds managed to pull in significant investments, leading with Rs 5,711 crore.

Meanwhile, gold exchange-traded funds recorded an inflow of Rs 1,980 crore, a decline from January's Rs 3,751 crore. Overall, though mutual funds garnered over Rs 40,000 crore in February, this was a noticeable drop from January's staggering Rs 1.87 lakh crore inflow, reducing the total assets under management from Rs 67.25 lakh crore to Rs 64.53 lakh crore.

(With inputs from agencies.)