Equity MFs see strong inflows in February despite dip in certain categories
MUMBAI : Mumbai: Net inflows into equity mutual funds jumped to a 23-month high in February, led by a surge of investments in thematic or sectoral funds. Net inflows rose 23% month-on-month to ₹26,865.78 crore, the highest since March 2022, data released by the Association of Mutual Funds in India (Amfi) showed on Friday. Thematic or sectoral fund inflows rose a whopping 134.4% month-on-month to ₹11,262.72 crore in February, from ₹4,804.69 crore in January.
Some of these thematic funds included Groww Banking & Financial Services Fund, Quant PSU Fund, SBI Energy Opportunities Fund, WhiteOak Capital Banking & Financial Services Fund and WhiteOak Capital Pharma and Healthcare Fund. “Equity inflows continue to soar, largely led by some NFOs (new fund offers). Notably, thematic/sectoral have seen massive interest.
Small and midcap flows have been buoyant. Most categories have seen positive flows in equity," said Anand Vardarajan, business head - institutional clients, banking, alternate investments and product strategy at Tata Asset Management. “The equity inflows continue to surge, led by NFOs.
The thematic space has received ₹16,000 crore net in January and February [combined] even as gross equity flows rose to ₹59,000 crore last month from approximately ₹51,000 crore in January," said Mayukh Datta, chief business officer, ITI Mutual Fund. However, there was a notable decline in inflows across several fund categories on a month-on-month basis. Large-cap funds witnessed the steepest drop, with inflows falling by 28.4% to ₹921.14 crore in February.
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