Equity Mutual Fund Investments Drop by 26.1% in February; Overall Inflows Decline by ₹1.47 Lakh Crore

Equity Mutual Fund Investments Drop by 26.1% in February; Overall Inflows Decline by ₹1.47 Lakh Crore

Winning Bizness Desk

Mumbai. In February 2025, equity mutual funds saw an inflow of ₹29,303 crore, marking a 26.1% drop compared to January’s ₹39,687 crore. According to data from the Association of Mutual Funds in India (AMFI), the total net inflows across all mutual fund schemes stood at ₹40,063 crore in February, significantly lower than ₹1.88 lakh crore in January, indicating a sharp decline of ₹1.47 lakh crore.

Total AUM Falls by 7%

The total Assets Under Management (AUM) of mutual funds stood at ₹64.53 lakh crore in February, down 7% from ₹67.25 lakh crore in January. The drop in AUM reflects a broader market correction and reduced investor participation.

Equity Mutual Funds Remain in Positive Zone for 48th Month

Despite the decline, open-ended equity funds maintained positive net inflows for the 48th consecutive month, meaning investments continued to exceed withdrawals. Thematic, sectoral, and flexi-cap funds attracted the highest interest from investors.

SIP Contributions Also Decline

Investments through Systematic Investment Plans (SIPs) also saw a slight dip. In February, SIP contributions stood at ₹25,999 crore, slightly lower than ₹26,400 crore in January. While SIP inflows remain strong, this marginal dip reflects cautious investor sentiment.

What is Mutual Fund AUM?

The Asset Under Management (AUM) of a mutual fund refers to the current market value of securities held by a mutual fund house. It is a key indicator of a fund’s size and growth potential.

Monthly Mutual Fund Inflows (₹ Crore)

Month Equity Mutual Fund Inflow Total Mutual Fund Inflow
January 2025 ₹39,687 crore ₹1.88 lakh crore
February 2025 ₹29,303 crore ₹40,063 crore

While equity mutual fund inflows dropped, the sector remains resilient, with investors continuing to show confidence in the long-term potential of Indian markets.