Strong SIP (Systematic Investment Plan) investments and steady lumpsum inflows helped sustain equity mutual fund inflows in February despite a slight decline in the Nifty 50 index and softer market sentiment.
Systematic Investment Plan (SIP) inflows remained resilient despite consolidation in the Indian stock market, helping sustain growth in the mutual fund industry, according to a report by Nuvama.
The report noted that while markets have been experiencing a phase of consolidation, consistent SIP contributions from retail investors have continued to support the industry’s overall volume growth.
“While markets continue to consolidate, SIP flows remain resilient, aiding industry volume growth,” the report stated.
According to the report, SIP inflows stood at Rs 299 billion in February 2026, marking a 3.7 per cent decline on a month-on-month (MoM) basis. However, the inflows remained robust and played a key role in supporting overall equity scheme inflows.
Meanwhile, lumpsum investments reached Rs 77.6 billion, registering a 4.6 per cent increase MoM, which further strengthened equity fund inflows.
As a result, active equity net inflows in February stood at Rs 376 billion, reflecting a 2.1 per cent decline compared with the previous month.
The report highlighted that active equity flows through existing schemes accounted for Rs 336 billion, while new fund offers (NFOs) contributed Rs 40 billion.
Although inflows through existing schemes declined by 10.6 per cent MoM, investments through NFOs surged sharply, rising 395.8 per cent during the same period.
Market conditions also had an impact on assets under management (AUM). The Nifty 50 index declined by 0.56 per cent on a month-on-month basis, leading to relatively modest growth in the industry’s assets.
According to the report, total active equity AUM increased by 1.6 per cent MoM to reach Rs 44.4 trillion.
Despite the short-term moderation, inflows remain strong on a broader financial year basis. For the financial year-to-date FY26 period, active equity net inflows stood at Rs 4.1 trillion, accounting for 11.1 per cent of the opening AUM.
The report further noted that during the same period, SIP inflows into active equity schemes reached Rs 3.2 trillion, while lumpsum equity inflows stood at Rs 916 billion.
Overall, the steady inflow of SIP investments highlights continued retail investor confidence in equity markets despite short-term volatility.
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