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Net inflows into equity mutual funds were down 27% to ₹29,300 crore, making it among the weakest performance since April 2024 amid a four-month low return in stock markets, according to data from Association of Mutual Funds in India (AMFI).
The slowdown in equity mutual funds led to a slower 18% increase in Asset Under Management (AUM) of all schemes to ₹64.5 lakh crore in the reporting month, which is the lowest in nine months. The AUM was about ₹67.5 lakh crore in the previous month. The rate of increase in AUM in February was also the slowest since October 2023.
The slowdown in AUM and inflow in to equity mutual funds also showed in data on Systematic Investment Plans (SIP) contributions and registrations. The monthly SIP contribution reduced for the second consecutive month, coming in at about ₹26,000 crore, which is a decline of 1.5% from January 2025. This is also a faster decline than previous month, when SIP contributions reduced just 0.2% from December 2024 inflows.
Total number of SIPs outstanding was 10.1 crore, slightly lower than 10.26 crore in January. The number of discontinued or reduced tenure SIPs reduced to 54.7 lakh, and the number of fresh SIPs started reduced to 44.6 lakh, which is lowest yet in the fiscal year.
The recently released mutual fund data assumes significance at a time when the benchmark nifty has consistently given negative returns for four consecutive months now. In the month of February, Nifty returns declined nearly 6%, according to data from Centre for Monitoring Indian Economy (CMIE). “Despite market fluctuations, net inflows stood at ₹40,063 crores, reflecting investor confidence in long-term wealth creation. The decline in the overall AUM from January to February was primarily due to mark-to-market losses in equity funds,” said Venkat Chalasani, Vice President of AMFI.
Published – March 13, 2025 06:19 am IST
