Industry experts attributed the surge in assets under management (AUM) to 'aggressive' investor awareness campaign both at the individual player level as well as at industry level.
In addition, investors are moving towards financial asset class for investment instead of buying traditional asset classes such as real estate and gold, which also helped in increasing the penetration of mutual funds.
According to Association of Mutual Funds in India (Amfi) data, investors have poured in a net Rs 1.06 trillion in mutual fund schemes last month as compared to a pullout of Rs 1.75 trillion in December.
The latest inflow has been mainly driven by contributions from liquid or money market funds, and equity, equity-linked saving schemes.
Individually, liquid funds - investments in cash assets such as Treasury Bills, certificates of deposit and commercial paper for shorter horizon - witnessed an inflow of Rs 965.52 trillion. Besides, equity and equity-linked schemes attracted over Rs 150 trillion.
In contrast, income funds saw an outflow of over Rs 98 trillion and gold ETFs continued to see a pullout of Rs 1.1 billion.
The latest inflow has also helped in pushing the AUM of the country's 42-player mutual fund industry to a historic high of Rs 22.41 trillion at the end of January from Rs 21.26 trillion at December-end 2017.
Bajaj Capital CEO Rahul Parikh said going ahead, digital investment platforms are going to be a big driver for the industry.
"These platforms are the best bet to attract the young salaried generation of millennials - who otherwise are humongous spenders on gadgets, cars and bikes - and inculcate in them the virtues of saving and investing," he added.