AMFI data February: Inflows into equity mutual funds in February slid to ₹29, 303 crore against ₹39,687 crore in January. It is worth recalling that the equity inflow had also declined in January as well on month-on-month basis.
Steep fall was witnessed in the mid and small cap funds where monthly inflow stood at ₹3,406 crore and ₹3,722 crore in February against ₹5,147 crore and ₹5,720 crore in January, respectively.
In large cap funds, inflow stood at ₹2,866 crore against ₹3,063 crore in January.
Notably, the equity inflow showed a declining trend in January as well when the inflow fell marginally by 3.6 percent month on month.
Debt mutual funds saw an outflow of ₹6,525 crore in February against an inflow of ₹1.28 lakh crore in January.
New fund offers
A total of 28 new fund offers were launched in the open-ended category in the month of February. Out of these, 12 were index mutual funds, one was gold ETF and five other ETFs, one multi cap fund and seven were thematic funds. These new fund offers contribute 36 per cent to inflow in sectoral/thematic funds, reveals the AMFI data.
Venkat Chalasani, Chief Executive, AMFI said, “The Indian mutual fund industry continues to demonstrate resilience, with consistent investor participation across categories. Despite market fluctuations, net inflows stood at ₹40,063 crores, reflecting investor confidence in long-term wealth creation. The decline in the overall AUM from January to February was primarily due to mark-to-market losses in equity funds. SIP contributions remained steady, highlighting the continued preference for systematic investments. AMFI remains committed to investor education and awareness, promoting financial discipline through all market conditions.”
“Domestic investors continued their strong participation in equity-oriented mutual funds in February 2025, marking the 48th consecutive month of net inflows into the segment. However, the pace of investments moderated compared to the previous month due to increased market uncertainty and a broader correction in equities. In February, investors infused ₹29,303.34 crores into equity-oriented mutual funds, down from ₹39,687.78 crores in January. Several factors contributed to the decline in investor sentiment, including concerns over rising interest rates in developed markets, particularly the US,” said Nehal Meshram, Senior Analyst, Manager Research, Morningstar Investment Research India.
Siddharth Alok, AVP Investments, Epsilon Money, says, “We must understand most of this money was chasing returns which was not possible over the long-term. Given the swift correction in Jan-Feb, the sentiments are much sombre now. Also, even debt funds have seen some outflows. Only looking at the ~26 per cent drop will not show the complete story.”
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