Equity Fund Inflows Hit 11-Month Low Amid Turbulent Markets

In March, equity mutual funds saw inflows dip to an 11-month low of Rs 25,082 crore, driven by outflows in sectoral and thematic funds amid market volatility. While mid-cap and small-cap funds attracted investors, debt funds faced significant outflows, totaling Rs 2.02 lakh crore.

In March, the inflow of equity mutual funds dipped to its lowest in 11 months, reaching Rs 25,082 crore. A sharp decline in sectoral and thematic funds, spurred by ongoing market volatility, was identified as the main cause of this downturn.

Equity funds experienced a 14% drop in inflow compared to February, even as systematic investment plans (SIPs) recorded a four-month low of Rs 25,925 crore. These shifts mark a notable change in investor sentiment as preferences move towards more flexible investment strategies, with mid-cap and small-cap funds attracting significant interest.

In contrast, debt funds saw an outflow of Rs 2.02 lakh crore in March, consistent with end-of-quarter patterns. Despite these outflows, the mutual fund industry's assets under management rose slightly to Rs 65.7 lakh crore by March-end.