Small-cap schemes drive inflows into MFs; equity MF net inflows hit 2-year high in February
Net inflows into open-ended equity funds hit a two-year high of Rs 26,866 crore in February owing to traction in sectoral and thematic funds, and small cap funds, data from the Association of Mutual Funds in India (Amfi) showed.
Small cap funds led the inflows, attracting the highest amount at Rs 2,922.5 crore in February. Large and mid-cap funds witnessed net inflow of Rs 3,157 crore in February. Flexi-cap funds witnessed net-inflow of Rs 2,613 crore, and equity-linked savings scheme witnessed a net inflow of Rs 339.1 crore, according to data.
Open-ended equity funds have witnessed net inflows for 36 straight months despite some valuation related concerns. The benchmark NSE Nifty 50 has risen nearly 55% in the last 36 months, aided by mutual fund inflows.
Inflow into systematic investment plan (SIP) hit record highs for the 14th time in 17 months. The SIP contribution for February was at Rs 19,187 crore.
Net inflows into sectoral and thematic funds rose 134% m-o-m to Rs 11,263 crore in February.
“Rising interest in sectoral and thematic funds due to the introduction of eight new funds aided equity inflows in February,” said Venkat Chalasani, chief executive of AMFI.
Groww Banking & Financial Services Fund; quant PSU Fund; SBI Energy Opportunities Fund; WhiteOak Capital Banking & Financial Services Fund; WhiteOak Capital Pharma and Healthcare Fund were launched in February.
“We have sought measures to strengthen risk management and enhance disclosures given to investors,” Chalasani said.
Last month, AMFI asked asset management companies to ensure appropriate policies to manage risks and protect investors following the surge in the small- and mid-cap segments.
AMFI will share the first set of disclosures on March 15,
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