Equity MFs see 36th month of inflows in February, new fund offers garner ₹9,388 crore

Hybrid schemes attracted a net inflow of ₹18,105.08 crore.

Although slightly lower than January's figures of ₹20,637 crore, the continued appeal of hybrid schemes highlights investors' ongoing interest in balanced investment options that provide exposure to both equity and debt.

Liquid funds, known for their stability and liquidity, saw a robust net inflow of ₹83,642.33 crore in February, a significant increase from January's figure of ₹49,468 crore.

Exchange-Traded Funds (ETFs) also experienced a notable uptick, attracting a net inflow of ₹6,461.67 crore in February, up from ₹571 crore in January.

However, amidst the positive trends, Credit Risk funds faced an outflow of ₹366 crore in February, slightly higher than the outflow of ₹303 crore in January.

Equity New Fund Offers (NFOs) played a significant role in driving the positive momentum, attracting a total of ₹9,388 crore. Notably, the SBI Energy NFO stood out as a major contributor, raking in ₹6,700 crore alone.

The strong response to equity NFOs indicates a sustained appetite for new investment opportunities among market participants.

The total assets under management (AUM) for the mutual fund industry climbed to ₹54.5 lakh crore.

Commenting on the numbers, Anand Vardarajan, Business Head – Banking, Institutional Clients, Alternate Products and Product Strategy, Tata Asset Management said, "Equity inflows continue to soar largely led by some NFOs. Notably thematic/sectoral have seen massive interest. Small and midcap flows have been buoyant. Most categories have seen positive flows in equity. Multi asset also saw a combination NFOs also led by NFO flows. The category has seen investor interest as markets scale new highs and we are seeing flows getting channelised in balanced advantage funds and multi asset with a view to diversify/derisk."