The ongoing downturn in the share market is clearly impacting mutual fund investors. SIP investments in February 2025 decreased to ₹25,999 crore, down from ₹26,400 crore in January. The consistently falling market has increased apprehension among retail investors, resulting in a SIP stoppage ratio reaching 122%, up from 109% in January.
26% Decline in Equity Mutual Fund Investments
Investments in equity mutual funds in February amounted to ₹29,303 crore, compared to ₹39,687 crore in January, representing a 26% decrease. Investors appear to be adopting a cautious approach due to market volatility.
Impact on SIP Accounts
According to AMFI data, while 4.456 million new SIP accounts were opened in February, 5.470 million SIP accounts were closed. The ongoing market decline is causing many investors to halt their SIPs, leading to a reduction in overall investment.
Significant Drop in Equity Inflow
Investment Status Across Different Categories:
* Small-cap funds: ₹3,722.46 crore (34.9% decline)
* Mid-cap funds: ₹3,406.95 crore (33.8% decline)
* Large-cap funds: ₹2,866 crore (6.4% decline)
* Focused funds: ₹1,287.22 crore (64.4% increase)
* Sectoral/Thematic funds: ₹5,712 crore
* Index funds: ₹4,177 crore
* Exchange Traded Funds (ETFs): ₹3,846 crore
Overall Mutual Fund Industry AUM Decreased
The mutual fund industry's Assets Under Management (AUM) decreased by 4% to ₹64.26 lakh crore, down from ₹66.98 lakh crore in January.
₹4,029 Crore Raised Through NFO Launches
Twenty-nine new fund offers (NFOs) were launched in February, raising ₹4,029 crore. However, given the current market conditions, investor sentiment remains cautious.
