Kolkata: Ask any passerby about the key to becoming a millionaire, and most will likely answer, “Invest in the stock market.” But is investing in stocks the only way to build wealth? For those hesitant about direct stock investments, mutual funds have long been considered a safer, more stable alternative.

However, despite offering strong returns over the years, mutual fund investments are now witnessing a decline. According to a report by the Association of Mutual Funds in India (AMFI), investments in mutual funds dropped by 26% in February. The total equity mutual fund inflow, which stood at ₹39,687 crore in January, plummeted to ₹29,000 crore the following month. Debt mutual funds also saw significant withdrawals, with investors pulling out ₹6,525 crore in just a month.

Even small-cap and mid-cap mutual funds, known for delivering high returns, are losing investor confidence. Small-cap fund investments fell by 35% in February, from ₹5,720 crore in January to ₹3,722 crore. Mid-cap funds witnessed a 34% decline. This trend highlights growing investor caution in an uncertain market.

Disclaimer: All investments are subject to market risks. Please read all scheme-related documents carefully before investing.