Small-caps lead equity MF inflows to near 2-year high in Feb despite 'froth' warning
Inflows into equity mutual funds hit the highest in nearly two years in February, with small-caps leading the charge despite valuation concerns, data from AMFI said on Friday. Net equity mutual fund inflows rose 23.34 per cent sequentially to Rs 26,866 crore ($3.25 billion), the highest since March 2022. Domestic equity mutual funds have seen net inflows for three years in a row, aggregating Rs 4.82 trillion, well above the net foreign inflows of Rs 17,778 crore. The benchmark NSE Nifty 50 has risen 54.68 per cent over the last 36 months, aided by mutual fund inflows. Contributions into systematic investment plans (SIPs) hit a new record of Rs 19,186 crore in February. “As we delve into the February data, we observe that there is a surge in SIP accounts, totalling 8.20 crores with 49.79 lakhs new SIP registrations. This underscores investors' unwavering commitment to disciplined wealth accumulation. The industry's net AUM has also reached ₹ 54,54,214.13 crores in February 2024," Venkat Chalasani, Chief Executive, AMFI, said.
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