Despite the fall in the stock market, last month equity mutual funds saw the highest investment in 9 months. Equity funds received Rs 15,685.6 crore in February. This is about 25% more than in January.

18,529 crore came in equity funds in May last year. According to the ‘Association of Mutual Funds in India’, investment in equity funds increased for the third consecutive month in February.

Trend of Net Investment in Equity Funds since 24 Months
In November 2022, only Rs 2,258 crore came in the equity fund. Interestingly, Sensex declined by 1.25% and Nifty by 1.77% in the last month. This month also the volatility in the market has increased. The Sensex has fallen 1,213 points in the last two days. Despite this, there has been a trend of net investment in equity funds for the last 24 months.

Withdrawal from liquid fund for the third consecutive month, companies invest in it
In the debt category, there was outflow from liquid funds for the third consecutive month. It is generally used by companies to hold short term cash. Since March is the last month of the financial year, withdrawals from liquid funds generally increase between January-March.

Common investors also invest money in this. When a target is met, money is withdrawn from other funds and put into liquid funds. It is like a savings account, but the returns are higher.

Profit booking in ETFs, but investment in index funds increased to Rs 6,244 crore
There was a net investment of only Rs 29 crore in exchange-traded funds (ETFs) in February. On the other hand, Rs 6,244 crore came in index funds. In fact, along with an investment of Rs 14,801 crore in ETFs, there was also a withdrawal of Rs 14,772 crore.

On the other hand, there was a withdrawal of just Rs 3,232 crore against an investment of Rs 9,476 crore in index funds. According to experts, investors who were getting handsome returns booked ETF profits last month.

SIP accounts increased, but there was a slight decrease in investment
Systematic Investment Plan (SIP) accounts increased to 6.28 crore in February. In January this figure was 6.21 crore. During this, 20.65 lakh new SIP accounts were opened. The mutual fund industry raised Rs 13,686.23 crore through SIPs in February.

This amount is Rs 169.90 crore less than in January. NS Venkatesh, CEO, AMFI, said, “This happened because there are only 28 days in February. Usually SIP is invested in the last three days of the month. In March, you will see these figures increased.