Magnetically induced accumulation and dispersion of ferrofluid in a forced flow of nonmagnetic fluid is studied experimentally and numerically to characterize the ferrofluid transport. The analysis would directly benefit several microscale and mesoscale applications like magnetic drug targeting and ferrofluid lithography. Experimental observation reveals existence of a ferrofluid core near the dipole, where the field gradient is high, and a washaway region. Numerical simulations show the ferrofluid mass flux in a similar configuration. Also, selective deposition of ferrofluid on a substrate wall exposed to a forced flow of nonmagnetic fluid is demonstrated numerically.