February 2025 Sees 26% Drop in Indian Equity Inflows

In February 2025, India's mutual fund industry faced significant challenges due to a market downturn, resulting in a 4% decrease in assets under management to ₹64.5 lakh crore from ₹67.3 lakh crore in January. Equity mutual fund inflows saw a sharp decline of 26% to ₹29,303 crore, marking a 10-month low as market corrections prompted investors to seek safer options. The Nifty 50 and BSE Sensex indices fell by nearly 6%, exacerbating the cautious stance among investors. Meanwhile, debt mutual funds experienced a net outflow of ₹6,525 crore after a substantial inflow in January. Systematic Investment Plans (SIPs) also witnessed a marginal decline, with inflows dropping to ₹25,999 crore. This trend reflects broader economic concerns, including slowing growth, weak corporate earnings, and unfavorable global conditions.