Net inflows into equity mutual funds slumped 68 per cent to Rs 5,122 crore in February this year as against Rs 16,268 crore in the same month a year ago amid market volatility.
This also marked the fourth consecutive month of decline in net investment into equity mutual funds, according to data by Association of Mutual Funds in India (Amfi).
Net inflows have been declining since October 2018, when investment stood at Rs 12,622 crore.
November saw Rs 8,414 crore net investment, December Rs 6,606 crore and January Rs 6,158 crore.
With this, asset base of equity mutual funds (MFs) came down to Rs 7.73 lakh crore at the end of February this year, as against Rs 7.76 lakh crore in the same month a year earlier.
Analysts attributed the tepid trend in equity mutual fund inflows to market volatility. They said SIPs (systematic investment plans) continue to be strong but lump sum flows have been tepid.
Amfi CEO N S Venkatesh said, "Once political uncertainty and liquidity tightness recedes over the next few months, we expect the inflows in both equity and liquid funds to strengthen further."