The net outflow from equity mutual funds stood at Rs 4,534 crore in February, the eighth consecutive month of outflow. February was marked by a rally in equities with the Sensex rising 6 per cent, meaning the mutual fund investors preferred to book profits.

Barring multi-cap, large-cap, mid-cap and focussed funds, all the other schemes saw outflows last month.

The newly created flexi cap category saw the maximum outflow of Rs 4497.23 crore. The large-cap category also saw withdrawals of Rs 1,280 crore.

However, investors ploughed Rs 1,735 crore into debt mutual funds last month because of the good showing in liquid, low-duration and money market funds even as several other categories saw outflows.

Net inflows into liquid funds stood at Rs 17,301.57 crore, low duration funds Rs 2,844.39 crore and money market schemes Rs 9,579.93 crore.

On the other hand, short-duration funds saw an outflow of Rs 10,286 crore .

“Profit booking in debt schemes with bond yields moving up, and in equity schemes with market indices at all time high is reflective of investors moving in tandem with market scenario,” N.S. Venkatesh, chief executive, Amfi said .

Increasing preference of hybrid schemes is reflective of retail investors becoming increasingly conservative, leaning towards capital preservation and moderate returns, amid acute market volatility, he said.

Despite the outflow from equities, asset under management (AUM) of the mutual fund industry rose to Rs 31.64 lakh crore in February.