Equity mutual funds: Amid market turmoil, investors plow in Rs 19,700 cr in equity MFs in Feb

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NEW DELHI: As the market plunged in February, affected by geopolitical tensions in Europe and rising inflation, mutual fund investors doubled down on their investments, trying to lap up equities at cheap prices.

Amfi data released for the month on Wednesday showed that investors poured in a net Rs 19,705.27 crore in equity-oriented funds, compared to Rs 14,887.77 crore in January. Flexi cap and sectoral fund were among the biggest beneficiaries of the inflows, getting more than Rs 3,000 crore each.

The debt segment saw net outflows but it was limited at Rs 8,274.29 crore despite liquid funds seeing inflows of Rs 40,273 crore. Short duration funds, corporate bond funds saw net outflows of over Rs 10,000 crore each.

Thanks to consistent investments made by investors, domestic institutional investors, which mostly comprised mutual fund managers, bought stocks worth Rs 42,084.07 crore during the month, against buying of Rs 21,928.40 crore in January. This is at the time FIIs have been withdrawing money in heaps from Indian markets.

“Despite concerns over the growing oil prices and the conflicts between Russia and Ukraine, which have in turn impacted the commodities markets in India, the markets have been witnessing positive flows. The trend is indicative of the increasing investor interest and awareness around investing,” said Kavitha Krishnan, Senior Analyst – Manager Research, Morningstar India.

It seems investors are making the most of the recent dip in the market. During February, Sensex dipped 3.05 per cent while BSE Midcap fell 5.11 per cent and BSE Smallcap index 8.77 per cent.

The total AUM of the mutual fund industry increased by Rs 31,533.53 crore to Rs 37.56 lakh crore at the end of February. Apart from the gains also includes mark-to-market losses or gains for the industry.

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