AMFI February 2025: Equity Mutual Fund Inflows Drop 26.16% MoM; Sectoral Funds Fall 36.64%

Investor sentiment in the equity mutual fund space weakened in February 2025, as per data from the Association of Mutual Funds in India (AMFI). Net inflows in equity mutual funds stood at ₹29,303.34 crore, representing a 26.16% decline from January’s ₹39,687.78 crore.

The decline in inflows aligns with global market uncertainties, concerns over the tariff war, and continued Foreign Institutional Investor (FII) outflows. These factors contributed to a more cautious investment approach, leading to a significant pullback in fresh investments across equity categories.

AUM Declines by ₹2.8 Lakh Crore

The total assets under management (AUM) of the mutual fund industry saw a contraction, dropping from ₹67.3 lakh crore in January to ₹64.5 lakh crore in February. This represents a 4.15% month-on-month (MoM) decline.

Mid-Cap and Small-Cap Funds Witness Double-Digit Declines

Mid-cap and small-cap funds, which had been receiving strong investor interest, experienced a notable reduction in inflows.

• Mid-cap funds: Inflows declined by 33.79% MoM, from ₹5,147.87 crore in January to ₹3,406.95 crore in February.
• Small-cap funds: Inflows fell by 34.96% MoM, from ₹5,720.87 crore in January to ₹3,722.46 crore in February.

Large-Cap Funds Hold Ground but See Marginal Drop

Large-cap funds, considered a safer bet during volatile periods, also saw reduced inflows.

• Inflows stood at ₹2,866 crore in February, compared to ₹3,063.33 crore in January, reflecting a 6.44% MoM decline.

Sectoral and Thematic Funds See a Steep 36.64% MoM Drop

Sectoral and thematic funds, which had been one of the biggest gainers in the past few months, saw a significant slowdown in February.

• Inflows dropped from ₹9,016.60 crore in January to ₹5,711.58 crore in February, marking a 36.64% MoM decline.

SIP Inflows Dip 1.5% in February 2025

Systematic Investment Plans (SIPs), a key indicator of retail investor participation, also recorded a slight decline.

• SIP inflows stood at ₹25,999 crore in February, down 1.5% from ₹26,400 crore in January.

NFO Mobilisation Stands at ₹4,029 Crore

A total of 29 new fund offers (NFOs) were launched in February 2025, collectively mobilising ₹4,029 crore.

Conclusion

The February 2025 AMFI data paints a picture of investor caution, with equity inflows declining by 26.16% MoM amid tariff war concerns and FII outflows. The sharp 36.64% drop in sectoral fund inflows, along with the decline in mid- and small-cap fund participation, signals a shift in sentiment. SIP inflows saw a minor dip of 1.5%.

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