Equity Mutual Funds Face 14% Inflow Dip Amid Market Turmoil

Equity mutual funds in India saw a 14% drop in inflows in March, recording Rs 25,082 crore amidst ongoing market volatility. This marks the third consecutive monthly decline. Flexi cap funds maintained strong inflows, while sectoral funds saw a significant decrease, indicating a shift towards more diversified investment strategies.

Amidst ongoing market volatility, equity mutual funds in India experienced a sharp 14% decline in inflows, amounting to Rs 25,082 crore in March, according to data released by the Association of Mutual Funds in India (Amfi) on Friday. This marked the third consecutive month of reduced inflows.

Flexi cap funds led the charge with Rs 5,165 crore in inflows, while sectoral and thematic funds recorded a substantial downturn from February's robust Rs 5,711 crore to Rs 735 crore. This trend suggests investors are veering away from niche sectors towards more versatile and flexible investment strategies.

Contrasting fortunes were seen in different segments, with mid-cap and small-cap mutual funds experiencing notable interest, while large-cap funds saw reduced inflows in March. Additionally, the industry faced a decline in debt funds, yet assets under management crept up to Rs 65.7 lakh crore by March-end.

(With inputs from agencies.)