Equity inflows jumps marginally in February; Small-cap funds dip marginally

Equity inflows jumped marginally to Rs 19,705.27 crore in February from Rs Rs 14,887.77 crore a month back, shows the monthly data released by the Association of Mutual Funds of India (AMFI).

Mid-cap funds stayed in sync with inflows of Rs 1,954.32 crore for the month as against Rs 1,770.02 crore in January. The drop for small-cap funds was minor from Rs 1,498.98 crore to Rs 1,429.74 crore.

Large-cap funds marked a positive money flow of Rs 2,338.58 crore from Rs 1,890.24 crore between the first two months of the year.

In the debt fund ambit, corporate bond funds recorded the largest net outflow of Rs 10,218.74 crore, while money market funds saw net outflows worth Rs 655.82 crore in February 2022. Liquid funds, in contrast, saw a massive uptick in inflows at Rs 40,273.37 crore.

AMFI Cheif Executive NS Venkatesh explained the dynamics, citing the ongoing interest rate scenario in the market, and the geopolitical tensions between Russia and Ukraine.

The total assets under management (AUM) and the amount of Systematic Investment Plan (SIP) contributions for February 2022 was down Rs 17 crore at Rs 11, 444 crore month-on-month. The number of SIP accounts grew from 5.05 crore to 5.17 crore during the period.

According to Venkatesh, the inflow into equity markets was a hugely positive sign, despite the marginal drop and it did not account for much other than being a reflection of the fall in mark-to-market values for the debt market.