Market Volatility Shakes Mutual Fund Inflows

Equity mutual fund inflows dropped by 26% in February, driven by reduced investments in small and midcap schemes amid ongoing market volatility. Investor caution persists, leading to a decline in systematic investment plan inflows. Despite challenges, long-term investor sentiment remains positive, seeking wealth creation opportunities.

In February, equity mutual fund inflows plunged by 26% to Rs 29,303 crore, largely due to diminished investments in small and midcap schemes amidst persistent market volatility.

This trend marks the second consecutive month of declining equity fund inflows, though it remains a notable 47-month streak of net inflows in this category.

Meanwhile, systematic investment plans (SIPs) registered a three-month low at Rs 25,999 crore for February, dipping from Rs 26,400 crore in January and Rs 26,459 crore in December. Industry experts suggest the shorter month partly explains this drop.

(With inputs from agencies.)