The inflow into equity mutual fund schemes plunged to ₹29,303 crore against ₹39,688 crore as the sharp fall in key benchmark markets rattled investors confidence.
The equity asset under management was also down by about ₹2 lakh crore at ₹27.39 lakh crore against ₹29.46 lakh crore in January largely due to mark-to-market loss, according to the data from Association of Mutual Funds in India.
The SIP contribution was lower at ₹25,999 crore against ₹26,400 crore in January due to lower number of days in February.
The number of SIP accounts closed jumped sharply to 65 lakh against new accounts opened at 44 lakh.
AMFI said the industry had to close 54 lakh accounts which had not been contributing consistently for three consecutive months. This was done as per SEBI mandate came into force last April.
AMFI expects another 12-15 lakh SIP accounts to be closed as per SEBI regulations. The SIP asset was down at ₹12.38 lakh crore (₹13.02 lakh crore).
Nehal Meshram, Senior Analyst – Manager Research, Morningstar Investment Research India said the pace of investments moderated compared to the previous month due to increased market uncertainty and a broader correction in equities.
Several factors contributed to the decline in investor sentiment, including concerns over rising interest rates in developed markets, particularly the US, she said.
Investors are adopting a cautious yet steady approach, reassessing their portfolios while maintaining long-term investment commitments, she added.
