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Equity MFs see strong inflows in February despite dip in certain categories
- Net inflows rose 23% month-on-month to ₹26,865.78 crore, the highest since March 2022, according to data from the Association of Mutual Funds in India on Friday
Mumbai: Net inflows into equity mutual funds jumped to a 23-month high in February, led by a surge of investments in thematic or sectoral funds. Net inflows rose 23% month-on-month to ₹26,865.78 crore, the highest since March 2022, data released by the Association of Mutual Funds in India (Amfi) showed on Friday.
Thematic or sectoral fund inflows rose a whopping 134.4% month-on-month to ₹11,262.72 crore in February, from ₹4,804.69 crore in January. Some of these thematic funds included Groww Banking & Financial Services Fund, Quant PSU Fund, SBI Energy Opportunities Fund, WhiteOak Capital Banking & Financial Services Fund and WhiteOak Capital Pharma and Healthcare Fund.
“Equity inflows continue to soar, largely led by some NFOs (new fund offers). Notably, thematic/sectoral have seen massive interest. Small and midcap flows have been buoyant. Most categories have seen positive flows in equity,” said Anand Vardarajan, business head - institutional clients, banking, alternate investments and product strategy at Tata Asset Management.
“The equity inflows continue to surge, led by NFOs. The thematic space has received ₹16,000 crore net in January and February [combined] even as gross equity flows rose to ₹59,000 crore last month from approximately ₹51,000 crore in January," said Mayukh Datta, chief business officer, ITI Mutual Fund.
However, there was a notable decline in inflows across several fund categories on a month-on-month basis. Large-cap funds witnessed the steepest drop, with inflows falling by 28.4% to ₹921.14 crore in February. Mid-cap and small-cap funds also saw declines, with inflows dipping by 12.27% and 10.27% to ₹1,808.18 crore and ₹2,922.45 crore, respectively.
Debt funds followed the trend of declining inflows in February, experiencing a 16.5% drop on a month-on-month basis. This brought the inflows down to ₹63,808.8 crore. This decline comes after net outflows in both December ( ₹75,560 crore) and November ( ₹4,707 crore). However, liquid funds bucked the trend, experiencing a surge of 69% in inflows to ₹83,642.33 crore from ₹49,468 crore in January.
Systematic investment plans (SIPs) reached an all-time high of ₹19,186.58 crore in February, compared to ₹18,838.33 crore in January. The number of mutual fund folios registered in February also hit a record high of 174.19 million.
“These trends not only showcase that investors are evolving to being financially savvy but also highlight collaborative efforts shaping a landscape where smart investment practices are valued,” said Venkat Chalasani, chief executive, Amfi.
“With widespread participation from retail investors nationwide, it's clear that the mutual fund industry is on a path of steady growth and lasting significance,” he added.
The mutual fund industry's net assets under management (AUM) also saw a significant increase, reaching ₹54.54 trillion in February, up from ₹52.74 trillion in January.
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Business NewsMutual FundsEquity MFs see strong inflows in February despite dip in certain categories
First Published:8 Mar 2024, 07:23 PM IST
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