Equity MF inflows up 8% in Feb on lower redemption; AUM grows to ₹82 trn

SIP inflows dip in truncated month; gold and silver ETF inflows fall sharply

Net inflows into equity mutual fund (MF) schemes inched up in February even as investments through systematic investment plan (SIP) witnessed a decline during the truncated month.

 

Active equity schemes garnered nearly ₹26,000 crore in February, up 8 per cent compared to the January tally. The increase came as a 13 per cent fall in redemptions more than offset a 5 per cent dip in gross inflows.

 

The rise in inflows last month can also be attributed to higher collections by new fund offerings (NFOs). In February, eight equity NFOs collected ₹3,955 crore, over fourfold higher than the January tally of ₹806 crore, shows data released by the Association of Mutual Funds in India (Amfi). SBI Quality Fund NFO alone garnered ₹2,245 crore. 

Despite the rise, the aggregate inflow into equity schemes in February was lower than the 2025 monthly average. However, experts said the inflows remain healthy, considering the volatility in equity markets and ongoing global uncertainties.

 

“Equity flows remain strong despite market volatility, indicating continued retail investor confidence. Categories like flexicap, focused fund, multicap fund, and large & midcap funds saw some moderation, but flows remain healthy and continue to form the core allocation for investors. Flexicap category got the highest inflows of ₹6,925 crore. Midcap, smallcap, and largecap funds continue to garner strong inflows, reflecting sustained investor appetite for growth-oriented segments,” said Ovas Bakshi, head-retail sales, Kotak Mahindra AMC.

 

SIP inflows in February, at ₹29,845 crore, were 4 per cent lower compared to January. The rare decline, according to Amfi, was largely due to fewer working days, with the already shorter month effectively ending on the 27th as the 28th fell on a Saturday.

 

"The marginal moderation compared to recent months is primarily due to February being a shorter month, with some end-of-month SIP instalments typically getting processed in early March," said Venkat Chalasani, chief executive officer (CEO), Amfi.

 

Gold and silver exchange traded funds (ETFs), which had outpaced equity schemes in terms of inflows last month, witnessed a steep decline in net investments in February. Net inflows into gold ETFs fell to about ₹5,255 crore from over ₹24,000 crore in January while silver ETFs saw net outflows of around ₹826 crore during the month. The net inflows into fund of funds (FoFs) also plummeted 70 per cent due to moderation in inflows into gold and silver FoFs.

 

"Inflows into gold ETFs and other ETFs were down significantly from last month at approximately ₹5,200 crore and ₹4,500 crore, respectively. However, on an absolute basis, the numbers are good. This comes amid heightened risks and as investors continue being drawn to the rally in precious metals," said Suranjana Borthakur, head of distribution & strategic alliances, Mirae Asset Investment Managers (India).

 

The overall net inflow, including that of debt, passive, and other scheme categories, was ₹94,530 crore in February. The inflows along with mark-to-market gains led to a 1.2 per cent rise in the industry's total assets under management (AUM) to ₹82 trillion in February.

 

Stocks of asset management companies (AMCs) rallied sharply on Tuesday, likely due to the sustained inflows. Aditya Birla Sun Life AMC surged up to 20 per cent to hit a 52-week high of ₹1,044. Other key performers included ICICI Prudential AMC and Nippon Life India Asset Management, each rising around 6 per cent, alongside gains in Shriram AMC (7 per cent), UTI AMC (5 per cent), and HDFC AMC (4 per cent).