New Delhi: Buying of domestic equities by mutual funds (MFs) dropped to a three-year low of Rs 10,381 crore in February 2026, down sharply from Rs 42,355 crore in the previous month, as per a Business Standard report. The downturn is due to the slowing inflows into equity schemes and heightened market uncertainties, which fund managers say could improve in the coming months if the recent sharp correction in the market is considered, the report stated.According to the report, mutual fund investments in equities are influenced by net inflows into equity and hybrid schemes, changes in cash holdings, and shifts in the equity allocation of hybrid funds.However, in January, net inflows into equity schemes too hit a seven-month low of Rs 24,029 crore, owing to a weak short-term performance of equity schemes. There was also a shift by investors towards relatively safer assets such as gold exchange-traded funds (ETFs), given the current geopolitical climate.Further, SIP inflows also declined marginally.Meanwhile, experts have remained divided on the outlook, with some saying the recent volatility has created buying opportunities and others thinking that the geopolitical tensions could, in fact, weigh on the investor sentiment, according to the report.A slowdown has also been witnessed in the fast-moving consumer goods (FMCG) market. According to NielsenIQ (NIQ) data, cited by The Times of India, consumption of soaps, shampoos, biscuits and other packaged goods started taking a hit in the December quarter with volume growth dropping to 2.6% compared to 6.2% the same quarter in the previous year.In the September quarter, the FMCG volume growth was 5.5%.Overall, the FMCG market grew at 7.8% in terms of value in the December quarter, its slowest growth in five quarters, as per Financial Express.This, as per the report, was an impact of the transition to the new goods and services tax (GST) regime in September, which disrupted sales at neighbourhood grocery stores, which are still the driving force behind most household grocery purchases.Many consumers had delayed purchases to avail the benefit of price cuts following the GST change, waiting for fresh stock of products to hit the markets. However, as per NIQ’s India head of customer success, FMCG and tech and durables, Sharang Pant, said that the March quarter could show a more positive impact of GST on consumption.According to the report, the companies have already been pointing towards gradual recovery in consumption as the December quarter earnings show, despite a depreciating rupee and heightened geopolitical tensions.The global uncertainties, however, continue to risk triggering price hikes, weighing on revival.