MF equity flows fall for fourth month in February, now at Rs 5,122 crore

Fall in trailing returns, ban on upfront commission cited as triggers for the current situation

Equity flows for the Rs 23-trillion mutual fund (MF) industry in the country continued to slip for the fourth straight month in February, falling to Rs 5,122 crore. This included equity-linked tax-saving schemes.

This is the lowest in 25 months. Compared to the average inflow over the past 12 months of Rs 9,825 crore, the February figure was 48 per cent lower.

Industry officials cited a fall in trailing returns and a ban on upfront commission as reasons for the current situation.

“The decline was inevitable as one-year returns have been negative. This has disappointed new investors. The ban on upfront commission has