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Informist, Wednesday, Mar. 12, 2025

MUMBAI – The mutual fund industry's overall assets under management declined 4% on month to a seven-month low of INR 64.53 trillion in February, according to data released by the Association of Mutual Funds in India on Wednesday. The drop was primarily due to a weak performance by equity-oriented funds. 

Assets held under equity-oriented schemes fell 7% to INR 27.40 trillion in February, mainly on account of marked-to-market correction, AMFI Chief Executive Venkat Nageswar Chalasani said in a conference call. The category saw net inflows of INR 293.03 billion during the month. The industry saw net inflows of INR 400.63 billion in February, the data showed.

Among equity schemes, sector or thematic funds saw the highest net inflows of INR 57.12 billion in February, with the assets under management at INR 4.27 trillion as of Feb. 28. However, net inflows into the category dipped significantly compared to INR 90.17 billion a month ago. Fund houses launched seven new fund offers in this category, which collectively garnered INR 20.72 billion.

Small- and mid-cap funds also posted a decline in net inflows in February at INR 37.22 billion and INR 34.07 billion, respectively. The comparable figures for the categories in January were INR 57.20 billion and INR 51.48 billion, respectively. 

Commenting on the drop in net inflows into small-cap and mid-cap funds, Chalasani said investors might have taken a 'wait and watch' stance due to rising volatility in the categories. 

The debt fund category saw net outflows of INR 65.26 billion in February, while its assets under management were marginally higher at INR 17.08 trillion as of Feb. 28 compared to a month ago. Excluding six funds in the debt category, most saw net outflows during the month, with the maximum net outflows from ultra short duration funds at INR 42.81 billion. On the other hand, liquid funds received the highest net inflows of INR 49.77 billion in February.

Net inflows into hybrid funds moderated to INR 68.04 billion from INR 87.68 billion in January. Within hybrid funds, arbitrage funds saw net inflows of INR 35.92 billion, down from INR 42.92 billion in January. The assets under management of hybrid schemes were down 2.7% on month at INR 8.52 trillion as of Feb. 28.

Index funds saw net inflows of INR 41.77 billion in February. There were 12 new fund offers launched in the index fund category, which attracted INR 6.71 billion of net inflows. Gold exchange traded funds saw a decline in net inflows at INR 19.80 billion, against INR 37.51 billion a month ago. 

Net inflows through systematic investment plans moderated to INR 259.99 billion in February from INR 264.00 billion the previous month. Assets under management of systematic investment plans declined to INR 12.38 trillion as of Feb. 28 from INR 13.20 trillion as of Jan. 31, again attributable to marked-to-market losses. While 5.5 million systematic investment plan accounts matured or were discontinued during the month, 4.4 million new folios were added.  End

Reported by Christina Titus 

Edited by Avishek Dutta

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