Mutual Funds

India’s equity mutual fund segment recorded robust investor participation in February, with net inflows reaching Rs 25,978 crore, reflecting an 8 percent increase compared with the previous month. The growth signals sustained investor confidence in the country’s long-term economic outlook despite global geopolitical uncertainties. The industry’s total assets under management rose to Rs 82 lakh crore, up from Rs 81 lakh crore in January, underscoring the steady expansion of India’s mutual fund sector.

ICICI Prudential Mutual Fund has announced the suspension of fresh subscriptions in three of its international schemes effective March 2, reflecting ongoing regulatory limits on overseas investments by Indian mutual funds. The affected schemes include the ICICI Prudential US Bluechip Equity Fund, ICICI Prudential Nasdaq 100 Index Fund and ICICI Prudential Strategic Metal and Energy Equity Fund of Funds. The decision, communicated to investors through a formal notice-cum-addendum, underscores the structural constraints imposed by aggregate industry-wide foreign investment caps.

Equity mutual funds in India experienced a notable slowdown in January 2026, with net inflows declining to Rs 24,028 crore. This marked a moderation from previous months, reflecting a cautious investor sentiment amid global market volatility and domestic macroeconomic concerns. Analysts attribute the softening to a combination of profit-booking, regulatory uncertainties, and inflationary pressures impacting retail and institutional participation.

India’s mutual fund industry has recorded a sharp expansion in assets under management, driven largely by rising retail participation and sustained inflows through systematic investment plans. The steady growth of SIP contributions has provided stability to the market, even amid global uncertainty and domestic volatility. Investors are increasingly favoring mutual funds as a long-term wealth-building tool, supported by improved financial awareness and digital access. Equity-oriented schemes led the growth, reflecting confidence in India’s economic prospects.

In a move that underscores growing investor confidence in India’s consumer-tech sector, SBI Mutual Fund has participated in eyewear major Lenskart’s pre-IPO funding round. The investment comes as the company readies itself for a much-anticipated stock market debut, expected to value it among the country’s leading direct-to-consumer (D2C) brands.

Choice International Ltd., a diversified financial services group, has reported a significant expansion of its assets under management (AUM) to Rs. 635 crore, achieved primarily through a series of strategic acquisitions. This milestone underscores the company’s commitment to strengthening its wealth management and advisory verticals amid rising competition in India’s financial services sector. The acquisitions have not only accelerated growth but also enhanced Choice International’s client portfolio, operational capacity, and market reach.

In a decisive regulatory step aimed at strengthening investor trust and ensuring fair pricing, the Securities and Exchange Board of India (SEBI) has announced a fresh review of valuation methodologies used by mutual funds for gold and silver holdings. This initiative is designed to standardize how these precious metals are priced within mutual fund portfolios, reducing discrepancies and enhancing transparency.