Equity Mutual Fund Inflows Drop 26 per cent to Rs 29,303 Crore in February as AUM Falls 4.04 per cent Amid Market Correction; Rs 6,525 Crore Outflow in Debt Schemes

The total inflows standing at Rs 40,063 crore in February compared to Rs 1,87,550 crore in January, according to data from the Association of Mutual Funds of India (AMFI) released on March 12.

Equity mutual fund inflows declined by 26 percent in February 2025 compared to the previous month, reaching Rs 29,303.34 crore. The total inflows standing at Rs 40,063 crore in February compared to Rs 1,87,550 crore in January, according to data from the Association of Mutual Funds of India (AMFI) released on March 12.

Despite the decline, net inflows into open-ended equity funds have remained positive for 48 consecutive months. The drop in inflows coincided with a significant market correction, as the BSE Sensex fell by 5.55 percent and the Nifty 50 dropped 5.89 percent in February. Market volatility was driven by global uncertainties, weak corporate earnings, and economic sluggishness.

Overall, the total net outflow across all equity-oriented schemes stood at Rs 10,384.44 crore, reflecting a 26.17 per cent decline from Rs 39,687.78 crore to Rs 29,303.34 crore.

Mid Cap Funds experienced an inflow of Rs 3,406.95 crore, a 33.82 per cent decline from Rs 5,147.87 crore of previous month. Small Cap Funds recorded an inflow of Rs 3,722.46 crore, down 34.93 per cent from Rs 5,720.87 crore.

dividend Yield Funds reported the highest drop in inflows in percentage terms, dropping 68.02 per cent from Rs 214.64 crore to Rs 68.65 crore. Sectoral/Thematic Funds saw an inflow of Rs 5,711.58 crore decline of 36.65 per cent from previous month inflows. Multi Cap Funds witnessed an inflow of Rs 2,517.69 crore.

Focused Funds were the only category with rise in inflows, increasing by 64.44 per cent, from Rs 783.07 crore to Rs 1,287.72 crore.

The overall Hybrid Schemes category recorded a net inflow of Rs 6,803.85 crore in the February 2025, marking a decline of 22.40 per cent compared to January 2025.

Only the Multi Asset Allocation Fund from Hybrid category saw an inflow rise of 4.97 per cent amounting  Rs 2,228.45 crore.

Index Funds saw an inflow of Rs 4,177.02, a drop of 20.51 per cent from last year, while GOLD ETFs experienced a significant decline of 47.22 per cent. Other ETFs recorded a strong inflow rise of 228.25 per cent, and Fund of Funds investing overseas saw an inflow jump of 217.32 per cent.

The overall net flow for income/debt-oriented schemes stood at Rs -6,525.56 crore, with a total outflow of Rs 6,525.56 crore, reflecting a decline of 105.07 per cent.

Ultra Short Duration Fund recorded an highest outflow of Rs 4,281.02 crore, reflecting a decline of 508.62 per cent.

Due to the mark-to-market losses in the equity segment, overall assets under management (AUM) of the Indian mutual fund industry fell 4.04 percent during February to Rs 64.53 lakh crore against Rs 67.25 lakh crore in the previous month.

Disclaimer: The article is for informational purposes only and not investment advice.