Equity mutual fund inflows rise 8% MoM to Rs 25,978 crore in February: AMFI data

Across passive fund categories, which include index funds, gold ETFs, other ETFs and fund of funds investing overseas, total inflows stood at about Rs 13,879 crore in February, significantly lower than the record Rs 39,954 crore seen in January and Rs 11,000 crore in December.

• Equity mutual fund inflows rose to Rs 25,978 crore in February
• Overall mutual fund inflows moderated but stayed net positive
• Gold ETFs saw inflows of Rs 5,255 crore, down from January

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Equity mutual fund inflows rose to Rs 25,978 crore in February, up about 8 percent from Rs 24,029 crore in January, according to monthly data released by the Association of Mutual Funds in India (AMFI). The increase suggests continued investor participation in equity schemes despite bouts of market volatility during the month.

The mutual fund industry as a whole recorded net inflows of Rs 94,543 crore in February, lower than Rs 1.56 lakh crore in January, reflecting moderation in flows across several categories after the strong rebound seen in the previous month. Even so, the industry continued to remain in net positive territory, indicating sustained investor interest in mutual fund investments.

Venkat Chalasani, Chief Executive of AMFI, said the February numbers highlight the continued resilience of the industry, with total assets under management rising to about Rs 82.03 lakh crore. He adds, “Equity funds recorded net inflows of around Rs 27,978 crore, marking the 60th consecutive month of positive inflows. SIP contributions stood at Rs 29,845 crore, reflecting continued investor confidence in disciplined, long-term investing."

Debt mutual funds saw net inflows of Rs 42,106 crore, sharply lower than the Rs 74,827 crore recorded in January. The category, however, remained in positive territory after witnessing a strong recovery last month following heavy outflows in December. The February data suggests that investors continued to allocate to fixed income funds, although the pace of inflows moderated.

Among other segments, hybrid schemes attracted Rs 11,983 crore, down from Rs 17,356 crore in January. Meanwhile, ‘other schemes’, including ETFs, recorded inflows of Rs 13,879 crore, significantly lower than the Rs 39,955 crore seen a month earlier.

Solution-oriented schemes, which include retirement and children’s funds, recorded inflows of about Rs 247 crore, compared with Rs 341 crore in January, indicating broadly stable participation in long-term goal-based investment products.

Overall, while total mutual fund inflows moderated on a month-on-month basis, equity schemes continued to see steady investor allocations, suggesting sustained retail participation in market-linked investment products.

Meanwhile, gold exchange-traded funds (ETFs) also continued to attract investor interest. The category recorded net inflows of Rs 5,255 crore in February, cooling sharply from January’s record Rs 24,040 crore surge. The February inflow was also lower than December’s Rs 11,647 crore but remained higher than November’s Rs 3,742 crore.

Industry experts say the data reflects the resilience of long-term investors despite recent volatility in financial markets. “Even with market fluctuations, overall inflows remain strong, showing that investors are increasingly focusing on long-term wealth creation rather than short-term movements,” said Varun Gupta, CEO of Groww Mutual Fund.

Equity funds: Category trends and flow shifts

Equity-oriented mutual funds attracted Rs 25,978 crore in February, slightly higher than Rs 24,029 crore in January, indicating steady investor participation despite market volatility.

Within categories, flexi-cap funds remained the largest contributor, attracting Rs 6,925 crore during the month. However, inflows moderated compared with Rs 7,672 crore in January and Rs 10,019 crore in December, suggesting investors may be adopting a more measured allocation strategy after strong inflows in recent months.

Mid-cap and small-cap funds saw stronger inflows during February. Mid-cap funds received Rs 4,003 crore, up from Rs 3,185 crore in January, while small-cap funds attracted Rs 3,881 crore compared with Rs 2,942 crore a month earlier. The increase suggests continued investor appetite for growth-oriented segments despite recent market volatility.

Large-cap funds also saw slightly stronger participation, recording inflows of Rs 2,112 crore compared with Rs 2,005 crore in January. The trend indicates some shift toward relatively stable large-company portfolios.

Large- and mid-cap funds attracted Rs 3,138 crore in February, broadly in line with Rs 3,182 crore seen in January. Multi-cap funds saw inflows of Rs 1,934 crore, marginally lower than Rs 1,995 crore in the previous month.

Sectoral and thematic funds recorded a notable jump in inflows, attracting Rs 2,987 crore compared with Rs 1,043 crore in January. The sharp increase suggests selective investor interest in specific sectors rather than broad-based allocations.

Focused funds, however, saw inflows decline to Rs 901 crore from Rs 1,557 crore in January.

The ELSS category continued to report outflows, with Rs 650 crore redeemed during the month, extending the trend seen in recent months as investors increasingly shift toward other diversified equity categories.

Industry experts note that flows continue to favour mid- and small-cap segments despite valuation concerns in parts of the market. “It is somewhat surprising that large-cap funds continue to see relatively lower inflows even as valuations in some large-cap segments, particularly banking, appear attractive,” said Dr. Vikas Gupta, CEO and Chief Investment Strategist at OmniScience Capital.

He further added "investor allocations in recent months suggest a degree of recency bias, with investors chasing categories that have delivered strong recent returns rather than focusing on long-term valuation opportunities."

Debt funds: Liquidity segments drive inflows

Debt mutual funds recorded net inflows of Rs 42,106 crore in February, lower than Rs 74,827 crore in January but remaining in positive territory.

The inflows were largely driven by liquid funds, which attracted Rs 59,077 crore during the month. This marks a significant increase from Rs 30,682 crore in January, indicating strong allocations from treasury and institutional investors.

In contrast, overnight funds saw outflows of Rs 14,006 crore after witnessing large inflows of Rs 46,280 crore in January, suggesting some reversal in short-term liquidity placements.

Money market funds also recorded inflows of Rs 6,267 crore, though lower than Rs 12,763 crore in January.

Several other debt categories continued to see outflows. Corporate bond funds recorded redemptions of Rs 2,302 crore, while banking and PSU funds saw outflows of Rs 1,473 crore.

Longer-duration categories such as long-duration funds, medium-duration funds, and dynamic bond funds also remained in negative territory, indicating that investors continue to favour shorter-tenure and liquidity-focused debt strategies amid interest rate uncertainty.

Gold ETFs: Inflows cool after January surge

Gold exchange-traded funds (ETFs) recorded net inflows of Rs 5,255 crore in February, cooling sharply from the record Rs 24,040 crore seen in January, according to AMFI data.

Despite the sharp month-on-month moderation, inflows remained significantly higher than several earlier months. In December, gold ETFs had attracted Rs 11,647 crore, while inflows stood at Rs 3,742 crore in November and Rs 7,743 crore in October.

The data suggests that investors continued to allocate to gold as part of portfolio diversification, although the extraordinary surge seen in January was not sustained.

Gold ETF inflows had already begun strengthening toward the end of last year, with Rs 8,363 crore flowing into the category in September, followed by Rs 7,743 crore in October and Rs 3,742 crore in November before the sharp spike in January.

Experts say gold has increasingly become a preferred diversifier during uncertain market phases. Vikas Gupta says, "The continued inflows into gold ETFs and multi-asset strategies indicate that investors are responding to recent strong performance in these segments and are looking for diversification amid geopolitical and market uncertainties."

SIP flows remain resilient

SIP contributions remained largely stable in February at around Rs 29,845 crore, slightly lower than the roughly Rs 31,000 crore recorded in January, indicating continued retail participation despite market volatility.

The moderation comes even as equity markets have moved largely sideways for more than a year. According to Santosh Joseph, CEO of Germinate Investor Services, the Nifty has delivered almost no point-to-point returns between September 2024 and March 2026.

Joseph explains, “In such an environment, some slowdown in new SIP registrations is natural as investors wait for clearer market direction."

Even with the slight dip, he adds, "the steady flow of SIP money highlights the resilience of systematic investing as investors increasingly adopt long-term, goal-based investment approaches."

Equity AUM: Assets continue to expand

Despite fluctuations in monthly flows, the total assets under management (AUM) of equity-oriented schemes continued to grow.

Equity mutual fund AUM rose to Rs 35.39 lakh crore in February, up from Rs 34.87 lakh crore in January.

Industry experts say the steady rise in assets reflects a structural shift in household savings toward market-linked products. According to Varun Gupta, "The continued growth in AUM and sustained inflows suggest that Indian investors are increasingly adopting systematic, goal-oriented investment approaches and looking beyond short-term volatility."