Equity Surge: Indian Mutual Funds See Rs 25k Cr Inflow as Debt Outflows Persist

The Indian mutual fund industry experienced Rs 25,000 crore in net inflows this quarter, primarily due to equity-oriented schemes. While equity funds saw inflows of Rs 117,000 crore, debt funds suffered Rs 110,000 crore in outflows. Investor preference is shifting toward cost-effective passive options and broad-based equity funds.

The Indian mutual fund industry attracted significant net inflows of approximately Rs 25,000 crore during the last quarter, as reported by Motilal Oswal Asset Management Company. The surge was predominantly fueled by equity-oriented schemes, despite a contrasting trend observed in debt funds, which faced continued outflows.

The detailed report revealed equity schemes garnered a massive Rs 117,000 crore in net inflows, underscoring strong investor sentiment. Conversely, the debt segment saw a drastic reversal with Rs 110,000 crore in net outflows. Notably, active equity funds contributed Rs 92,000 crore, while passive equity inflows totaled Rs 25,000 crore.

Echoing a shift toward cost-effective strategies, passive equities now constitute 21.5% of equity net flows. Broad-based funds in equity gained momentum, capturing 64% market share. Furthermore, Flexi Cap, Small Cap, and Mid Cap funds dominated active equity inflows, signaling an evolving investor focus on diversified options.