Net flows into equity schemes jump 25% in February
Investor inflows into equity mutual funds (MFs) jumped by 25% in February, rising to ₹15,685 crore, from ₹12,546 crore in previous month.
The sectoral/thematic funds category saw the highest investments, followed by small cap funds, while large cap funds saw the least amount of net flows.
The large flows coming in sector/thematic funds can be attributed to two new fund offers (NFOs) that were launched – Axis Business Cycle Fund and Kotak Banking and Financial Services Fund – which together received ₹2,540 crore of investor flows.
Overall, sector/thematic category collected ₹3,855 crore of net flows. Small cap funds received net flows of ₹2,246 crore. Multi cap funds, which invest a minimum of 25% each in large cap, mid cap and small cap stocks, received ₹1,977 crore of net flows.
Large cap funds only drew ₹353 crore of net flows in February.
There were some withdrawals from debt schemes. Ultra Short Duration Funds and Low Duration Funds saw net outflows of ₹2,429 crore and ₹1,903 crore, respectively.
The monthly contribution through systematic investment plans (SIPs) continued to hold steady with collections of ₹13,686 crore in February, which was 1.2% lower than previous month. But this slight dip can be attributed to there being just 28 days in the month of February.
NS Venkatesh, chief executive of Association of Mutual Funds in India (Amfi) said, “February monthly numbers show positive trend on equity and hybrid funds. Equity mutual funds saw a substantial inflow of ₹15,685.57 crores as compared to ₹12,546.5 crores for the month of January and ₹7,303.39 crore in Dec 2022 reflecting investors’ confidence in the growth potential of the Indian economy and their preference for long-term wealth creation through equity investments. “
“Retail investors continue to enter the markets via the SIP route, which is reflected in the consistent rise in SIP inflows over the last many months. Due to the fact that February has only 28 days, there is a dip seen in SIP contribution numbers as the flows are not recorded for the full month of 31 days,” he added.
Mutual fund folios reached an all-time high of 144 million folios as of 28 February. The assets under management (AUM) of MF industry stood at ₹39 trillion as of 28 February.
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