SIP inflows slip 4% to Rs 29,845 crore in February; equity funds see steady demand amid volatility

Systematic Investment Plan (SIP) inflows into mutual funds declined marginally in February 2026, reflecting the impact of a shorter month, even as overall investor participation remained strong and equity-oriented schemes continued to attract steady flows.

According to data released by the Association of Mutual Funds in India (AMFI), SIP contributions stood at Rs 29,845 crore in February, down about 4% from Rs 31,002 crore in January. Despite the dip, inflows remained close to the ₹30,000-crore mark, highlighting continued discipline among retail investors.

Market participants noted that February typically records slightly lower collections because instalments scheduled for the 29th, 30th and 31st are often processed in early March, which can shift part of the inflow into the following month. On a year-on-year basis, SIP inflows were still higher by about 15% compared with ₹25,999 crore in February 2025, indicating sustained growth in systematic investing.

Feroze Azeez, Joint CEO, Anand Rathi Wealth, said the trend shows increasing maturity among retail investors. “SIP contributions during the month were marginally lower than the record level seen in January, but they remain close to the ₹30,000 crore mark and continue to show strong growth on a yearly basis. This reflects the discipline investors are bringing to their investment journey and the growing trust in mutual funds as a long-term wealth creation vehicle,” he said.

Equity inflows remain resilient

Equity mutual funds continued to receive strong inflows despite intermittent volatility in domestic and global markets. Net inflows into equity schemes rose to ₹25,977 crore in February, up from ₹24,028 crore in January, though lower than ₹29,303 crore recorded in February last year.

Within equities, mid-cap funds attracted ₹4,003 crore, while small-cap funds saw inflows of ₹3,881 crore. Large-cap funds received ₹2,111.7 crore, indicating that investors continued to balance growth opportunities with relatively stable segments.

Himanshu Srivastava, Principal Research, Morningstar Investment Research India, said investor participation remained strong despite global uncertainties.
“Equity-oriented mutual fund categories recorded net inflows of nearly ₹26,000 crore in February, suggesting resilience in investor sentiment. Strong SIP contributions and confidence in India’s long-term growth prospects continue to support flows,” he said.

He added that the sharp rise in mid-cap and small-cap inflows suggests investors are selectively deploying money after recent market corrections, while large-cap funds are benefiting from demand for stability.

Sectoral and thematic schemes also saw inflows of about ₹2,987 crore, largely driven by new fund launches, while flexi-cap funds remained the largest category with ₹6,925 crore of inflows, although lower than the previous month.

Iran war and your MF investment

The ongoing conflict involving Iran, Israel, and the United States has sharply weakened equity market sentiment, leading to heavy losses for investors in recent sessions. In just six trading days, investors have lost more than ₹25 lakh crore in market value, reflecting the nervousness across global and domestic markets.

Data shows that the total market capitalisation of BSE-listed companies fell from ₹4,63,50,671 crore on February 27, 2026, to ₹4,38,35,042 crore on March 9, 2026. The market remained closed on March 3 for Holi and on March 7–8 for the weekend, meaning the decline occurred in a limited number of trading sessions.

The sharp fall in equities has started to affect mutual fund performance as well. Returns across several schemes have turned negative, with many funds showing losses not only over the last three and six months but also on a one-year basis. This has increased anxiety among retail investors, especially those investing through SIPs, as uncertainty over the duration of the war continues to weigh on markets.

According to Value Research data, several equity funds have fallen more than 12% in the past six months. These include technology, consumption, small-cap, and thematic funds such as Motilal Oswal Digital India Fund (-21.76%), UTI Innovation Fund (-20.23%), Tata Small Cap Fund (-17.16%), and HDFC Technology Fund (-14.25%), reflecting the broad-based correction across high-growth segments.