Post by Centrum Wealth

Mutual Fund Flows Turn Selective – Feb’26 A Market of Selective Bets: Mutual fund flows in Feb’26 show a clear preference for select sectors rather than a broad-based risk-on approach. Private Banks (₹136 bn) and Consumer Discretionary (₹131 bn) lead inflows, while IT (₹85 bn) also sees meaningful allocation. At the same time, several sectors continue to witness outflows, highlighting a cautious and selective stance. Divergence Within Financials: Within financials, the contrast is clear — private banks are witnessing strong inflows while PSU banks continue to see outflows. PSU banks have seen a sharp run-up over the past cycle, while private banks have lagged, leading to a meaningful narrowing in valuation gaps. As positioning resets, flows appear to be shifting back toward quality franchises with more consistent earnings visibility. Shift Away from Cyclicals: The sharp outflows from PSU Banks (-₹77 bn), Autos (-₹37 bn), and Metals (-₹22 bn) show a clear move away from cyclical sectors. After a strong run, these areas are seeing profit booking and lower interest. In contrast, steady inflows into consumption and IT reflect a tilt towards defensives and valuation comfort. Overall, flows suggest a shift from momentum-driven trades to more balanced risk-reward opportunities. Overall, Feb’26 flows signal a market that is becoming increasingly discerning—favoring quality, defensives, and valuation comfort over broad-based momentum, as investors position for a more balanced and selective growth environment. Centrum Wealth Limited – AMFI registered distribution ARN 82601 Initial Registration: June 06, 2011 Valid Till – May 30, 2026.   Centrum PMS is registered under -Centrum Investment Advisors Limited vide SEBI Registration Number: INP 000007535 Validity: Perpetual   For Disclaimer - https://lnkd.in/dRF5EkcY   #CentrumWealth #weforyou #ChartDecoded  #MutualFund