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Equity fund inflows dropped 26.17 percent to Rs 29,303 crore in February from Rs 39,687 crore in January due to market volatility, AMFI data shows.
Net Equity Inflows Decline 26% In February: AMFI
Mutual Fund Data: The net inflows in equity funds declined by 26.17 per cent month-on-month to Rs 29,303 crore in February as compared to Rs 39,687 crore amid the market volatility, according to AMFI data.
There’s an overall sharp decline in net inflows in February to Rs 40,063 crore, against Rs 1,87 lakh crore in January 2025, reflecting the general trend of less investor participation and worry over market uncertainty. The total AUM (Asset Under Management) size decreased to Rs 64,53,493 crore in February 2025, as compared to Rs 67,25,449.67 crore.
Sectoral/thematic funds continue to see strong inflows, though lower than in January.
There’s a surge in AUM in gold ETFs to Rs 55,677.25 crore in February, against Rs 51,839.39 crore in January. However, the net inflows in Gold ETFs dropped from Rs 3,751.42 crore in January to Rs 1,979.84 crore in February.
However, the pace of investments moderated compared to the previous month due to increased market uncertainty and a broader correction in equities. In February, investors infused INR 29,303.34 crores into equity-oriented mutual funds, down from INR 39,687.78 crores in January.
According to Nehal Meshram, Senior Analyst – Manager Research, Morningstar Investment Research India, several factors contributed to the decline in investor sentiment for instance escalation in global trade war, geopolitical tensions, slower domestic earnings growth, profit booking at high valuations, and continued FII outflows didn’t augured well for the markets “The escalation in global trade tensions and Federal Reserve’s tightening stance triggered a risk-off sentiment thus weighing on investor sentiments. Additionally, geopolitical tensions, slower domestic earnings growth, profit booking at high valuations, and continued FII outflows didn’t augured well for the markets.”
