New Delhi: Equity mutual funds witnessed inflows worth Rs 2,522 crore in February, the lowest level in the last 21 months, mainly on account of weakness in stock markets.
This was the third successive month when the flows in local equity mutual funds (MFs) declined.
According to data with the Association of Mutual Funds in India, equity schemes received funds to the tune of Rs 2,522 crore last month, lower than Rs 2,914 crore in January and Rs 3,644 crore in December.
This was the lowest level of inflow since May 2014, when equity mutual funds had witnessed an investment of Rs 2,022 crore.
In 2015, equity MFs saw an average monthly inflow of Rs 7,550 crore.
Market analysts attributed lower investment in equity and equity-linked saving schemes to weakness in the domestic stock markets due to the continuous slump in oil prices as well as on fears of a global slowdown.
Despite moderation in inflows, local MFs continued to be the biggest institutional investors last month. MFs made a net investment of Rs 5,946 crore in stock markets.
Meanwhile, the 30-share benchmark index Sensex plunged 7.51 percent last month.
MFs are investment vehicles made up of a pool of funds collected from a large number of investors and invest in stocks, bonds and money market instruments, among others.