By Sanjay Agarwal, Senior Director, CareEdge Ratings

‘‘The mutual fund industry’s assets under management reduced by 4% m-o-m to Rs.64.53 lakh crore primarily due to MTM losses in the equity space. This asset price reduction comes on the backdrop of global uncertainties and macroeconomic factors which has caused the benchmark indices nifty 50 and BSE Sensex to decline by approximately 6%. However, investors continue to repose faith in the industry despite these turbulent times, net equity inflows have remained positive for the last 48 months, witnessing Rs 0.29 lakh crore net inflows in February 2025 with all equity categories registering net inflows for the month. Further, the net inflows declined by 26% as compared to January 2025. Additionally, during February 2025, 28 open-ended NFOs were floated which collectively mobilised Rs.0.04 lakh crore with sectoral/thematic funds accounting for 52% share. Meanwhile, debt mutual fund categories witnessed outflows barring the liquid fund, short duration fund, medium to long duration fund, corporate bond fund, banking and PSU fund, gilt fund with 10-year constant duration. While there was marginal net outflow in debt mutual fund category, overall AUM of the category remained steady at Rs.17.08 lakh crore for the month of February 2025 owing to MTM gains.’’