India records highest monthly SIP investments in February
What's the story
Systematic investment plans (SIPs) in India reached a new record high of Rs. 19,186 crore last month, up from Rs. 18,838 crore in January.
Open-ended equity funds saw a 23% increase in inflows, reaching Rs. 26,865.78 crore in February, as reported by the Association of Mutual Funds of India (AMFI).
This marks the 36th consecutive month of positive inflows in since March 2021.
Details
Inflows in small-cap, mid-cap and large-cap fundsÂ
Despite concerns from the Securities and Exchange Board of India (SEBI) about froth in small-cap and mid-cap segments, these funds experienced strong inflows in February.
Mid-cap funds saw a 12% dip but still received healthy inflows of Rs. 1,808 crore while small-cap funds witnessed a 10% decline with net investments of Rs. 2,922 crore.
Also, large-cap category registered third highest flows in 20 months with net inflows of Rs. 921 crore.
Growth markers
Sectoral funds led the equity asset class
The Sectoral/Thematic Funds category recorded highest inflows among equity classes at Rs. 11,262.70 crore in February.
These funds are invested in the same economic sector. This was driven by the launch of five new schemes.
These schemes are Groww Banking and Financial Services Fund, Quant PSU Fund, SBI Energy Opportunities Fund, WhiteOak Capital Banking and Financial Services Fund, WhiteOak Capital Pharma and Healthcare Fund.
These five schemes collectively garnered Rs. 7,178 crore during their new fund offer (NFO) period.
Fund-specific details
Debt funds witnessed reduced net inflowsÂ
Debt funds registered net inflows of Rs. 63,809 crore in February, compared to Rs. 76,469 crore in January.
The short-term Liquid Fund category attracted the highest investments at Rs. 83,642 crore, followed by Rs. 3,029 crore inflows into the Corporate Bond Category.
However, Low Duration Funds experienced outflows of Rs. 4,100 crore and Floater Funds saw Rs. 3,610 crore outflows.
Overall, inflows into open-ended mutual fund schemes reduced from Rs. 1.23 trillion in January to Rs. 1.19 trillion in February.