Equity Mutual Funds Surge Amid India-US Trade Boost

Equity mutual funds in India saw net inflows of Rs 25,978 crore in February, an 8% rise from January, driven by the India-US trade deal. Despite volatility due to Middle East conflicts, the industry's AUM rose to Rs 82 lakh crore. Flexi cap funds led the inflow increase.

Equity mutual funds attracted significant attention in February, seeing net inflows of Rs 25,978 crore. This marks an 8% increase from the previous month, a rise attributed to the burgeoning India-US trade relationship, as reported by industry body Amfi.

The increased inflows contributed to an uplift in the industry's Assets Under Management, which rose to Rs 82 lakh crore from Rs 81 lakh crore in January, Amfi CEO Venkat N Chalasani explained that while long-term growth expectations remain strong, near-term volatility may arise from tensions in the Middle East involving the US, Israel, and Iran.

Among equity schemes, flexi cap funds were the largest gainers, collecting Rs 6,924.65 crore in net inflows, followed by mid-cap and small-cap funds. However, ELSS funds experienced a net outflow of Rs 650 crore, indicative of profit-booking behavior or reduced tax-saving investments.

(With inputs from agencies.)