The Indian mutual fund industry saw its assets under management (AUM) shrink by 4% in February, dipping from Rs 67.3 lakh crore in January to Rs 64.5 lakh crore, as per the latest Association of Mutual Funds in India (AMFI) data. The market sell-off in February led to a substantial decline of Rs 3 lakh crore in overall AUM.
According to AMFI, retail investors maintained their commitment to mutual funds via Systematic Investment Plans (SIPs), with inflows only slightly decreasing to Rs 25,999 crore from January’s Rs 26,400 crore. Nonetheless, investments in equity funds saw a significant drop, with net equity inflows at Rs 29,241.78 crore, down from Rs 39,669.6 crore in January.
The mutual fund sector recorded total inflows of Rs 40,063 crore against outflows of Rs 1,87,551 crore in February, indicating increased investor selling pressure. The sharp reduction in inflows hit particularly small-cap and mid-cap funds, correlating with declines in small and mid-cap share values. Small-cap fund inflows decreased to Rs 3,722.5 crore from Rs 5,721 crore, while mid-cap funds slipped to Rs 3,407 crore from Rs 5,148 crore.
Large-cap funds also faced reduced inflows, receiving Rs 2,866 crore in February compared to Rs 3,063.3 crore the previous month. The equity AUM overall dropped to Rs 27.4 lakh crore from January’s Rs 29.5 lakh crore.
Debt funds had a mixed February; corporate bond funds saw a significant turnaround with Rs 1,065 crore in inflows, rebounding from January’s Rs 217.4 crore outflow. Meanwhile, gold ETFs attracted Rs 1,980 crore, a decrease from January’s Rs 3,751.4 crore, yet overall ETF inflows rose to Rs 3,846 crore from Rs 1,172 crore.
New Fund Offers (NFOs) experienced slightly reduced inflows, collecting Rs 4,029 crore compared to Rs 4,544 crore in January. The industry’s asset downturn and diminished equity inflows reflect the adverse impact of frail stock market activity last month.
(With inputs from agencies.)
