Equity MF Inflows Rise in February; Gold ETF Flows Ease After January Spike

Equity mutual fund inflows rose 8% month-on-month in February to ₹259.77 billion, indicating continued investor participation in equities even as overall industry inflows moderated from the previous month.

 

Data released by the Association of Mutual Funds in India (AMFI) showed shifts in allocations across market capitalisation segments. Mid-cap funds recorded inflows of ₹40.03 billion, up 26% from January. Small-cap funds attracted ₹38.81 billion, marking a 32% increase month-on-month. Large-cap funds saw marginal growth in inflows to ₹21.12 billion.

Flexi-cap funds, which invest across market capitalisations, recorded lower inflows during the month. Net inflows declined to ₹69.24 billion from ₹76.72 billion in January.

February also saw the launch of 21 new fund offers, which mobilised ₹49.79 billion. The launches included eight equity funds, four index funds, one dynamic asset allocation fund and seven exchange-traded funds.

Across the mutual fund industry, total net inflows into open-ended schemes stood at ₹945.43 billion in February, down from ₹1.56 trillion in January. The moderation followed the sharp rebound in inflows recorded at the start of the year, though overall flows remained in positive territory.

Systematic investment plan contributions remained elevated. Monthly SIP inflows stood at ₹298.45 billion in February, indicating continued retail participation through periodic investment routes.

 

 

Gold exchange-traded funds recorded net inflows of ₹52.55 billion in February, down from ₹240.40 billion in January. The decline followed the spike seen in the previous month when inflows had reached record levels.


Despite the month-on-month moderation, gold ETF allocations remained higher compared with several earlier months. Inflows had stood at ₹116.47 billion in December, ₹37.42 billion in November and ₹77.43 billion in October.

The data indicates continued portfolio diversification through allocations to precious metals, even as flows into the segment normalised after January’s surge.