Mutual Fund Inflows Remain Resilient Amid Market Volatility in February, Gold ETF Flows Ease

Mutual Fund Industry Continues to Attract Investor Interest

The Association of Mutual Funds in India (AMFI) has released its latest data, showcasing the mutual fund industry's resilience in the face of market volatility. Despite the Sensex falling 1.2 percent and the Nifty declining 0.6 percent in February, equity schemes attracted Rs 25,978 crore, marking the 60th consecutive month of inflows.

The steady inflows helped lift the mutual fund industry's assets under management (AUM) to Rs 82.03 lakh crore, a 1.3 percent increase from January. The industry also added 42.58 lakh net folios during the month, reflecting continued retail participation in financial markets.

Flexi-cap funds led the charge in equity inflows, attracting Rs 6,925 crore and extending their inflow streak to the seventh consecutive month. Mid-cap and small-cap funds also saw significant inflows, with Rs 4,003 crore and Rs 3,881 crore, respectively.

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Systematic Investment Plan (SIP) contributions stood at Rs 29,845 crore in February, slightly lower than the Rs 31,002 crore recorded in January. However, SIP assets grew 1.7 percent month-on-month to Rs 16.64 lakh crore, accounting for around 20.3 percent of the total mutual fund industry AUM.

New Fund Offers (NFOs) continued to attract investor interest, with eight equity NFOs launched during February, collectively mobilising Rs 3,955 crore. Sectoral and thematic funds dominated the new launches, with six such funds raising Rs 3,560 crore.

Specialised Investment Funds (SIFs) recorded strong growth during the month, with assets rising to Rs 9,711 crore, marking a 47.9 percent month-on-month increase. The category saw record inflows of Rs 3,127 crore, supported by the launch of three new investment strategies.

Passive Funds showed mixed trends during the month, with the overall AUM declining 1.1 percent month-on-month to Rs 15.23 lakh crore due to mark-to-market losses. However, inflows remained positive, with gold exchange-traded funds (ETFs) emerging as the biggest contributor, attracting inflows of Rs 5,555 crore during February.

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