SIP Inflows Remain Resilient Despite Market Consolidation: Nuvama Report

A Nuvama report shows resilient SIP inflows are supporting the mutual fund industry despite market consolidation. February 2026 saw robust SIPs of Rs 299 billion and active equity net inflows of Rs 376 billion, buoyed by a surge in NFOs.

Systematic Investment Plan (SIP) inflows continued to remain resilient despite consolidation in Indian stock markets, supporting the overall growth in the mutual fund industry, according to a report by Nuvama.

The report stated that while markets have been witnessing consolidation, SIP flows have remained strong, aiding the industry's volume growth. It stated, "While markets continue to consolidate, SIP flows remain resilient aiding industry volume growth".

February 2026 Inflow Details

According to the report, robust SIP inflows of Rs 299 billion in February 2026, though slightly lower by 3.7 per cent month-on-month (MoM), along with lumpsum inflows of Rs 77.6 billion, which increased by 4.6 per cent MoM, supported overall inflows into equity schemes. As a result, active equity net inflows for February 2026 stood at Rs 376 billion, marking a decline of 2.1 per cent on a month-on-month basis.

Existing Schemes vs. New Fund Offers (NFOs)

The report further highlighted that active equity flows through existing schemes and new fund offers (NFOs) stood at Rs 336 billion and Rs 40 billion respectively. While flows through existing schemes declined by 10.6 per cent MoM, inflows through NFOs witnessed a sharp rise of 395.8 per cent during the same period.

Impact on Assets Under Management (AUM)

Market weakness during the month also had an impact on assets under management. The Nifty 50 index declined by 0.56 per cent on a month-on-month basis, which led to a relatively modest growth in total active equity assets under management (AUM). According to the report, total active equity AUM grew by 1.6 per cent MoM to reach Rs 44.4 trillion.

Financial Year-to-Date Performance

Despite the short-term moderation in flows, the report highlighted strong inflows on a financial year-to-date basis. For the year-to-date FY26 period, active equity net inflows stood at Rs 4.1 trillion, which accounts for 11.1 per cent of the opening AUM.

The report further noted that for February 2026, active equity net inflows, excluding arbitrage, index funds and exchange traded funds (ETFs), declined by 2.1 per cent MoM to Rs 376 billion. For the year-to-date FY26 period, SIP inflows into active equity schemes stood at Rs 3.2 trillion, while lumpsum active equity net inflows came in at Rs 916 billion, the report added. (ANI)

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