Mutual fund equity inflows saw a decline to ₹29,303 crore from ₹39,688 crore as the major benchmark markets experienced a sharp fall, leading to a loss in investor confidence. The equity asset under management also decreased by approximately ₹2 lakh crore to ₹27.39 lakh crore compared to ₹29.46 lakh crore in January, primarily due to mark-to-market losses, as per data from the Association of Mutual Funds in India.
The SIP contribution was lower at ₹25,999 crore in February compared to ₹26,400 crore in January, attributed to fewer days in the month. The number of SIP accounts closed increased significantly to 65 lakh, surpassing the number of new accounts opened at 44 lakh.
AMFI revealed that 54 lakh accounts were closed, which had not been consistent contributors for three consecutive months, in compliance with SEBI regulations implemented in April last year. They anticipate closing another 12-15 lakh SIP accounts as per SEBI guidelines. The SIP asset also decreased to ₹12.38 lakh crore from ₹13.02 lakh crore.
Nehal Meshram, Senior Analyst – Manager Research at Morningstar Investment Research India, mentioned that the pace of investments slowed down compared to the previous month due to increased market uncertainty and a broader correction in equities. Various factors such as concerns over rising interest rates in developed markets, particularly the US, contributed to the decline in investor sentiment.
Investors are currently taking a cautious yet steady approach, reassessing their portfolios while maintaining their long-term investment commitments.
The article was published on March 12, 2025.
