Net inflows in equity funds (excluding NFOs) came in at a record high of Rs. 17,800 crore in February despite a market correction due to the Ukraine crisis.
"Net inflows have been higher in the last four months at lower market levels. In the last few years, every sharp market fall is witnessing higher inflows, indicating maturity among retail investors," ICICI Direct said in its report.
AMFI data shows that equity funds received a net inflow of Rs. 19,705 crore in February. Of this, only Rs. 1,916 crore came through NFOs. In comparison, on other high inflow months of July and December, NFOs brought majority of the money into equity funds.
Green bars denote inflows in existing schemes | Red bars denote NFO inflows
'Inflows hold strong, outflows decline'
An analysis of one year AMFI data indicated towards a rise in maturity among investors. While inflows have been strong throughout the March 2021 to February 2022 period, redemptions have declined.
Surge in investment through SIPs is one of the biggest reason behind the constantly high inflows into equity funds. Inflows through SIPs rose for nine straight months till January before declining a bit in February.
