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Mutual Fund Inflows Stay Firm In February 2026 Despite Market Dip

  • By Kotak News Desk
  • 11 Mar 2026 at 1:22 PM IST
  • Market News
  •  4 minutes read
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Mutual funds continued to attract inflows last month despite broader markets showing weaknesses. The inflows boosted the industry’s total assets which stood at ₹82.03 lakh crore at the end of Feb.

Mutual fund investors continued to add money to equity schemes in February even as domestic markets slipped. Equity mutual funds attracted net inflows of ₹25,978 crore during the month, according to data released by the Association of Mutual Funds in India (AMFI).

This marked the 60th straight month of inflows into equity schemes. The trend held despite volatility in financial markets. Note that the BSE Sensex declined 1.2% and the Nifty 50 slipped 0.6% during the month amid geopolitical tensions.

The steady inflows helped push the mutual fund industry’s total assets under management (AUM) to ₹82.03 lakh crore at the end of February. This represented a 1.3% increase compared with January.

Retail participation also continued to expand. The industry added 42.58 lakh net folios during the month. This indicated sustained investor engagement with mutual fund products.

Within equity schemes, flexi-cap funds drew the highest inflows during February. During the month,

  • Flexi-cap funds attracted inflows of ₹6,925 crore.

  • Mid-cap funds attracted inflows of ₹4,003 crore.

  • Small-cap funds attracted inflows of ₹3,881 crore.

  • Sectoral and thematic funds attracted inflows of ₹2,987 crore.

Other findings from AMFI’s data revealed the following during the month of February:

  • Launch of 8 new fund offers (NFOs) during February, collectively mobilising ₹3955 crore.

  • Rise in assets of specialised investment funds to ₹9,711 crore.

  • 1.1% month-on-month AUM decline of passive funds to ₹15.23 lakh crore.

  • Net inflows of ₹5,555 crore in gold exchange-traded funds.

  • Inflow of ₹3,233 crore in index funds.

Also Read - Novus Loyalty IPO To Open 17 March, Targets ₹60.15 Crore

The findings show investors' confidence in mutual funds despite market volatility. Investors continued to put money into equity and diversified schemes. For fund houses, the increase in AUM and folios points to continued participation from retail investors. The figures also indicate that investors are gradually allocating more money to passive products and specialised investment strategies.

Sources:

Moneycontrol

The Economic Times

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