Equity fund flows pick up in Feb even as SIPs get less

In February, equity mutual funds in India experienced a resurgence in investor interest, with inflows rising to ₹25,977 crore, an 8% increase from January. This uptick in equity investment indicates a growing confidence among investors, who appear to be focusing on long-term prospects despite ongoing market uncertainties. However, the popularity of gold and silver exchange-traded funds (ETFs) waned, with gold ETFs seeing net inflows of ₹5,255 crore—down significantly from January's record ₹24,040 crore—while silver ETFs faced outflows of ₹826 crore. Analysts attribute this shift to profit-taking after sharp price increases in precious metals. Additionally, systematic investment plans (SIPs) recorded a 4% decline in contributions, totaling ₹29,845 crore compared to the previous month. The mutual fund industry's total assets under management rose to ₹81.77 lakh crore. In terms of fund categories, flexi-cap funds attracted the most inflows at ₹6,924 crore, although this was a 10% decrease from January's figures. Meanwhile, debt funds saw robust inflows of ₹42,106 crore, reflecting a cautious approach among investors favoring liquidity and stability. Overall, the data suggests a complex investment landscape, with varying investor sentiments across different asset classes.