Equity Mutual Funds See Record Dip Amid Geopolitical Tensions

Inflow in equity mutual funds dropped by 3.24% to Rs 24,269 crore in April due to ongoing market volatility and tensions between India and Pakistan. Despite this, the mutual fund industry experienced a significant overall boost, lifting its asset under management to a new record.

Equity mutual funds experienced a notable dip in inflow by 3.24% to Rs 24,269 crore in April, highlighting a continued trend of market instability amid rising tensions between India and Pakistan post the Pahalgam terrorist attack.

Despite being the fourth consecutive month of reduced inflows, it marked the 50th month of net inflows in the category, showcasing a resilient investor interest. Debt funds, on the other hand, saw a reversal with an inflow of Rs 2.19 lakh crore in the same month, after witnessing a substantial withdrawal in March.

The mutual fund industry, overall, marked a robust infusion of Rs 2.77 lakh crore in April, pushing the assets under management to an unprecedented Rs 70 lakh crore. This data revealed by the Association of Mutual Funds in India underscores the balancing act amid global challenges, with specific segments like Flexi Cap Funds attracting significant inflows.

(With inputs from agencies.)