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Below is Quote on on Mutual Funds Outlook for February 2023 By Jeevan Kumar KC, Head Investment Advisory at Geojit Financial Services

The latest AMFI data divulge the fact that the investors are getting more matured and they are prepared enough on how to use the opportunity wisely. The consistent rise in SIP inflow is a positive sign as the retail investors realize the volatility in the market essentially averages out their purchasing cost over a long investment tenure and they also don’t need to worry about how to time the market when they opt for the SIP route.

It is visible that  the Indian equity market has been showing some sluggishness since the starting of 2023. On the first trading day of the year, which means on 2nd of January the BSE Sensex was closed at 61167 points, later on the last trading day of the same month it reached at 59549. The trend continued in February as well as the market closed at 58962 on the last trading day of the month. Overall a dip of 2205 points during the first 2 month of the year.

On the contrary, the Mutual fund industry tells a different story. AMFI has released the industry data for the month of February. Though markets remain volatile, retail investors seem to be more attracted towards mutual funds. The net inflow towards equity schemes was Rs. 15685 crores which is Rs.3139 crores higher than that of January 2023. The most preferred and popular investment method SIP’s monthly inflow for February was Rs.13685 crore. This is for the 5th consecutive month the SIP monthly inflow maintained its level beyond Rs. 13000 crores. Valuations in small caps have reached at an attractive level and the same has been reflected in a better inflow of Rs.2246 crores in the segment.

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