New Delhi [India], March 12 (ANI): The mutual fund industry's net assets under management (AUM) dropped by 4 percent to Rs 64.5 lakh crore in February from Rs 67.3 lakh crore in January, according to data by the Association of Mutual Funds in India (AMFI).

Amid the stock market sell-off, the mutual fund industry in India had a tough February, with a decline of around Rs 3 lakh crore in overall assets under management (AUM).

However, according to AMFI data, retail investors continued to invest in mutual funds (MFs) through a Systematic Investment Plan (SIP). SIP inflows declined only marginally to Rs 25,999 cr in February from Rs 26,400 cr in January 2025.

But overall investments in equity funds were significantly lower as compared to January. The net equity inflows stood at Rs 29,241.78 crore in February, down from Rs 39,669.6 crore in January.

The total inflows in the mutual fund industry stood at Rs 40,063 crore in February, while the outflows surged Rs 1,87,551 crore. The selling pressure in the markets must have prompted the investors towards the selling side.

Among different categories of equity funds, small-cap and mid-cap funds witnessed a sharp drop in inflows as small and mid-cap shares also declined sharply during the month. Inflows into small-cap funds fell to Rs 3,722.5 crore in February from Rs 5,721 crore in January. Mid-cap fund inflows also declined to Rs 3,407 crore from Rs 5,148 crore in the previous month.

Large-cap funds, which invest in big companies, saw a smaller decline in inflows. These funds received Rs 2,866 crore in February, compared to Rs 3,063.3 crore in January.

The overall equity AUM dropped to Rs 27.4 lakh crore in February from Rs 29.5 lakh crore in January.

Debt funds, which invest in fixed-income securities, had a mixed month. Corporate bond funds, which invest in high-quality debt instruments, saw inflows of Rs 1,065 crore in February, a sharp recovery from an outflow of Rs 217.4 crore in January. However, overall inflows into debt funds remained subdued.

Similarly, gold exchange-traded funds (ETFs) attracted Rs 1,980 crore in February, a notable drop from Rs 3,751.4 crore in January. Meanwhile, overall ETF inflows improved, rising to Rs 3,846 crore from Rs 1,172 crore in January.

New Fund Offers (NFOs), which indicate fresh investments in newly launched mutual funds, saw slightly lower inflows. In February, NFOs collected Rs 4,029 crore, compared to Rs 4,544 crore in January.

The mutual fund industry saw a decline in overall assets and lower equity inflows in February due to weak stock market performance. (ANI)