Mutual Funds: Net equity inflow in Feb rises 35% vs Jan; debt fund outflows jump

The net equity inflow increased to Rs 19,645 crore in February as against Rs 14,552 crore in January, according to data released by the Association of Mutual Funds in India (AMFI) on Wednesday.

Liquid fund inflow for the month stood at Rs 40,273 crore versus Rs 14,398 crore outflow, month on month. The hybrid fund inflow was at Rs 3,177 crore versus Rs 6,230 crore inflow and ETF inflow stood at Rs 10,791 crore against Rs 4,009 crore inflow, MoM.

The inflow of multi-cap funds declined to Rs 585.3 crore last month, as against Rs 891.4 crore in January. Large-cap funds inflow, however, increased Rs 2,338.6 crore, up from Rs 1,890.2 crore the previous month.

Mid-cap funds inflow too jumped to Rs 1,954.3 crore while in January, it was recorded at Rs 1,770 crore in January. Small-cap funds inflow stood at Rs 1,429.7 crore in February, as against Rs 1,498.4 crore in January.

The industry posted a total net inflow of Rs 31,533.5 crore.

The SIP contribution also rose to Rs 11,438 crore, marginally lower from Rs 11,517 crore in January.

On the increase in inflow, Sunil Subramaniam, MD & CEO of Sundaram Mutual Fund, said, there’s a lack of alternatives, equities still represent a much better return on a post-tax basis compared to what FDs and other fixed-income instruments give.

“Consumer surpluses are also growing because IT hiring and so salaries are actually rising. So people have more money in their hands and I think equity is an option,” he told CNBC-TV18.