February’s Mutual Fund Growth Led by Small-cap Funds with Rs 2,922.4 Crore Inflow, Mid-caps Follow Strongly at Rs 1,808.2 Crore. Sizeable Contributions from Large-cap Funds Boost Mutual Fund Flows with Rs 921.14 Crore Inflow in February.
In a recent update from the Association of Mutual Funds in India (AMFI), the equity category experienced a significant surge in inflows during February. Data unveiled a notable increase of 23.3%, totaling ₹26,866 crore in inflows.
Leading the charge were small-cap funds, securing a net inflow of Rs 2,922.4 crore, closely trailed by mid-cap funds at Rs 1,808.2 crore. Large-cap funds also made a substantial contribution, with a net inflow of Rs 921.14 crore.
This marks the 36th consecutive month of positive inflows since March 2021, indicating sustained investor interest in equity funds. Notably, systematic investment plans (SIPs) reached an all-time high of Rs 19,186 crore in February, up from Rs 18,838 crore in January.
In a statement addressing the monthly data, Venkat Chalasani, Chief Executive of AMFI, highlighted a surge in SIP accounts, totaling 8.20 crore with 49.79 lakh new SIP registrations. Chalasani emphasized investors’ steadfast commitment to disciplined wealth accumulation. Additionally, he noted that the industry’s net AUM reached Rs 54,54,214.13 crore in February.
The total AUM of mutual funds saw a 3.42% increase in February, reaching Rs 54.54 lakh crore compared to Rs 52.74 lakh crore in January.
In February, the mutual fund industry witnessed the launch of around 20 open-ended new fund offers (NFOs), collectively amassing Rs 11,469 crore in investments. Additionally, two close-ended NFOs raised Rs 251 crore in funds during the same period.
Sectoral/thematic funds gained significant traction, experiencing a remarkable 134% increase in assets under management (AUM). This category recorded the highest inflows of Rs 11,262.72 crore, a substantial rise from Rs 4,804.69 crore in January.
Liquid funds secured the highest inflow in February, receiving approximately Rs 83,642.33 crore compared to Rs 49,467.67 crore in January.
On the other hand, overnight funds experienced the highest outflow of Rs 17,375.61 crore, reversing the inflow of Rs 8,995.07 crore in January. Low-duration funds also witnessed an outflow of Rs 4,100.38 crore in February.