Equity Mutual Funds Witness Rs 19,705 Cr Net Inflow In February

Equity inflow witness a net Rs 19,705.27 crore in equity-oriented funds in February compared to Rs 14,887.77 crore in January according to AMFI statistics released on Wednesday. In the middle of a volatile stock market and persistent FPI selling, this is the 12th straight monthly net inflow.

Further, Flexi cap and sectoral fund were among the biggest beneficiary of the inflows, getting more than Rs 3,000 crore each. Mid-cap funds had inflows of Rs 1,954.32 crore in February, compared to Rs 1,770.02 crore in January. Small-cap funds saw a little decline from Rs 1,498.98 crore to Rs 1,429.74 crore. Between the first and second months of the year, large-cap funds saw a positive money flow of Rs 2,338.58 crore, up from Rs 1,890.24 crore.

Despite inflows of Rs 40,273 crore into liquid funds, net withdrawals from the debt category were confined to Rs 8,274.29 crore. While, both Short duration funds, and corporate bond funds saw net outflows of over Rs 10,000 crore each.

Overall, the mutual fund industry registered a net inflow of Rs 31,533 crore in February, compared with a net inflow of Rs 35,252 crore in the preceding month.

On the AMFI data, Mr. Akhil Chaturvedi, Chief Business Officer, Motilal Oswal AMC says, "Markets have been flat in last 1 and 3 months at headline level, despite we have seen domestic appetite for equities to be on rise. In current times of geo-political risks where markets have corrected sharply, yet the domestic investors have continued to add more allocation to equity. This is clearly change of attitude of investors towards this asset class and a definitely a positive change. At this stage, net domestic positive flows is supporting the massive outflows seen by FII's on daily basis. A large part of the positive flows is also due to the strong SIP flow of 11k cr monthly which continues to grow strongly."