New Delhi, March 18 -- Equity mutual funds continued to witness strong inflows in February 2026, although the pace moderated slightly amid the ongoing US-Iran war in the Middle East. According to a report by JM Financial, domestic equity mutual funds recorded inflows of Rs.37,600 crore in February, marking a 2% month-on-month decline after a similar drop in January.

Despite the marginal slowdown, mutual funds remained active in the market, selectively increasing exposure to certain sectors while trimming positions in others.

The report shows that the top five sectors where domestic mutual funds are overweight compared with the BSE 200 remain unchanged from January.

These sectors include Pharmaceuticals & Healthcare, E-commerce, Consume...