Equity flows into mutual funds strong in February despite stock decline

Equity MFs have seen net inflow of Rs 1.64 trillion since April. A little over Rs 600 billion or about 40 per cent of these have come through the SIP route

Investor flows into mutual funds (MFs) remained strong last month, despite the markets suffering their worst monthly setback in two years.

Equity schemes have reported net inflow of Rs 163 billion in February, the highest in three months, despite the benchmark indices falling five per cent. More than half of these were on account of Systematic Investment Plans (SIPs), a facility where investors commit to invest a fixed sum every month.

These, say observers, underscore the trend of consistent inflow, irrespective of market direction. All categories of equity funds, barring information technology schemes, took a hit of three to seven per cent