India’s Mutual Fund Industry: Dream run continues, Equity inflows surge in February

financialexpress.com:

The mutual fund industry in India has been witnessing unprecedented growth, with inflows in the equity category surging significantly in February. According to data released by the Association of Mutual Funds in India (AMFI), the month witnessed inflows amounting to ₹26,866 crore, reflecting a spike of 23.3 percent. Small-cap funds led the way with a net inflow of ₹2,922.4 crore, followed by mid-cap funds with ₹1,808.2 crore, and large-cap funds with ₹921.14 crore in net inflows. Equity funds have seen positive inflows for the 36th consecutive month since March 2021.

Investments through systematic investment plans (SIPs) reached a new all-time high of ₹19,186 crore last month, up from ₹18,838 crore in January. The total assets under management (AUM) of mutual funds saw a 3.42% increase in February, reaching ₹54.54 lakh crore compared to ₹52.74 lakh crore in January.

These trends indicate the increasing popularity and acceptance of mutual funds as an investment avenue among investors in India. The industry’s growth can be attributed to various factors, including increasing investor awareness, regulatory reforms, and the ease of investing through mutual funds. As the industry continues to evolve, it presents significant opportunities for both investors and fund houses alike.

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Key Trends:

Sectoral/Thematic Funds: Sectoral/thematic funds experienced a 134% increase in AUM, with the category receiving the highest inflows of ₹11,262.72 crore, up from ₹4,804.69 crore in January.

Liquid Funds: Liquid funds recorded the highest inflow in February, receiving around ₹83,642.33 crore compared to ₹49,467.67 crore in January.

Outflows: On the other hand, overnight funds