Equity mutual fund inflows rose sharply by 56% to ₹40,450 crore in March from ₹25,978 crore in February, according to data released by the Association of Mutual Funds in India (AMFI), highlighting sustained investor appetite for equities despite volatile market conditions. 

The inflows marked the 61st consecutive month of positive equity flows, underscoring continued confidence in long-term wealth creation through market-linked instruments. However, the overall mutual fund industry reported net outflows of ₹2.39 lakh crore in March, compared with net inflows of ₹94,543 crore in the previous month, primarily due to heavy redemptions in debt schemes. 

Debt mutual funds

Debt mutual funds saw outflows of ₹2.94 lakh crore, reversing inflows of ₹42,106 crore in February. Analysts attribute such sharp swings to institutional and treasury-related movements, typically seen at the close of financial periods. 

Hybrid funds

Hybrid funds also seen outflows of ₹16,538 crore during the month, against inflows of ₹11,983 crore in February, indicating some moderation in demand for balanced investment strategies. 

“The mutual fund industry continues to witness steady investor participation. Equity inflows extending for 61 consecutive months reflect sustained confidence in long-term wealth creation,” said Venkat Chalasani. He added that systematic investment plan (SIP) contributions remained robust at ₹32,087 crore, with nearly 9.72 crore contributing accounts. 

Assets under management 

Industry assets under management (AUM) declined to ₹73.73 lakh crore in March from ₹82.03 lakh crore in February, largely due to mark-to-market losses amid a correction in equity markets. Average AUM (AAUM) stood at ₹79.46 lakh crore. 

According to Nitin Agrawal, the headline outflows and decline in AUM should not be viewed in isolation. “The net outflow is almost entirely driven by debt fund redemptions, a typical quarter-end phenomenon, while equity inflows signal conviction buying,” he said, adding that investor maturity is evident in sustained inflows despite volatility. 

He noted that flexi-cap funds led inflows, reinforcing the importance of diversification, while mid-cap and small-cap categories also saw increased traction, indicating emerging value-buying opportunities. Moderation in gold ETF flows further pointed to improving sentiment towards equities. 

Key highlights 

Mutual fund folios rose to 27.39 crore in March, with a net addition of 33.63 lakh accounts during the month. Retail participation remained strong, with retail AUM (equity, hybrid and solution-oriented schemes) at ₹42.89 lakh crore and retail folios at over 20.82 crore. 

SIP assets stood at ₹15.10 lakh crore, accounting for around 20.5 per cent of total AUM, while monthly SIP contributions were recorded at ₹32,086.78 crore. 

During the month, 24 new schemes were launched, mobilising ₹3,985 crore. 

Meanwhile, the SIF category recorded assets of ₹10,620 crore, marking a 9.4 per cent month-on-month rise, with inflows of ₹1,314 crore driven largely by hybrid strategies. 

Overall, the data indicates that while headline numbers were impacted by debt outflows and market volatility, investor confidence in equities remains resilient with a more diversified and long-term investment approach.