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According to data from the Association of Mutual Funds (AMFI) in India, the net flow in equity mutual funds was below 27% to 29,300 crores, which was between the weakest performance since April 2024, which was between four months low returns in stock markets.
The recession in equity mutual funds led to an increase of 18% under the management (AUM) of all schemes of all schemes during the reporting month, which increased to ₹ 64.5 lakh crore in the reporting month, the lowest in nine months. Aum was about ₹ 67.5 lakh crore in the previous month. The rate of increase in AUM in February was also the fastest since October 2023.
The recession in AUM and inflow in equity mutual funds also showed systematic investment schemes (SIP) contribution and data on registration. Monthly SIP contribution decreased in the second consecutive month, which is falling at around ₹ 26,000 crore, which is a decline of 1.5% from January 2025. This is also a rapid decline compared to the previous month, when there was a decrease of only 0.2% from December 2024.
The total number of SIPs was outstanding 10.1 crore, slightly less than 10.26 crores in January. The number of sips of closed or reduced tenure decreased by 54.7 lakhs, and the number of fresh sips decreased by 44.6 lakhs, which is the lowest in the financial year so far.
Recently released mutual fund data assumes importance at a time when benchmark Nifty has given consecutive negative returns for four consecutive months. According to data from the Center for Monitoring Indian Economy (CMIE), in the month of February, the Nifty returns declined. “Despite the market fluctuations, the net inflow was for ₹ 40,063 crore, which reflects investor’s confidence in long-term money creation. The decline in overall AUMs from January to February was mainly due to the loss of mark-to-market in equity funds, ”said AMFI Vice President Venkat Chalasani.
Published – March 13, 2025 06:19 AM IST
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