Mutual Funds AUM drops ₹3 Lakh Crore

New Delhi

The Indian mutual fund industry witnessed a sharp fall in assets under management (AUM) in February 2025, with a decline of nearly ₹3 lakh crore, according to data released by the Association of Mutual Funds in India (AMFI). The AUM dropped by 4% to ₹64.5 lakh crore in February, down from ₹67.3 lakh crore in January.

The fall in AUM was mainly due to a significant stock market sell-off. However, retail investors continued investing through Systematic Investment Plans (SIPs), which saw only a slight dip to ₹25,999 crore in February from ₹26,400 crore in January.

Equity fund investments declined sharply, with net equity inflows falling to ₹29,241.78 crore from ₹39,669.6 crore in January. Small-cap and mid-cap funds saw major drops as market volatility hit these segments hard. Inflows into small-cap funds reduced to ₹3,722.5 crore from ₹5,721 crore, and mid-cap funds saw inflows fall to ₹3,407 crore from ₹5,148 crore.

Large-cap funds remained relatively stable, with inflows of ₹2,866 crore in February. The total equity AUM fell to ₹27.4 lakh crore from ₹29.5 lakh crore.

Debt funds showed mixed results. Corporate bond funds saw a positive turnaround with ₹1,065 crore inflows, while overall debt fund inflows remained low. Gold ETFs attracted ₹1,980 crore, lower than January’s ₹3,751.4 crore.

New Fund Offers (NFOs) also saw slightly lower collections, with ₹4,029 crore in February. Overall, mutual funds faced pressure due to weak market performance.