Equity MF Inflow Dip 3% To Rs 24,269 Cr In Apr

New Delhi: Inflow in equity mutual funds dipped 3.24 per cent to Rs24,269 crore in April as concerns over potential US tariffs and a shift in investor preference toward debt and hybrid strategies weighed on sentiment. This was the fourth consecutive month of decline in inflow in equity funds amid continued market volatility against the backdrop of escalating tensions between India and Pakistan following the Pahalgam terrorist attack. Also, the latest fund infusion by investors marks the 50th consecutive month of net inflows into the segment. Despite the decline, Systematic Investment Plan (SIP) contributions remained robust, registering a record Rs26,632 crore in inflows in April, higher than Rs25,926 crore in the preceding month, data released by Association of Mutual Funds in India (Amfi) on Friday showed.

“The steady increase in SIP contribution was driven by a steady increase in the number of contributing accounts, which now total 8.38 crore. This continued growth reflects the rising preference among investors for mutual funds as a disciplined and effective tool for long-term savings,” said Venkat Chalasani, Chief Executive at Amfi.

Apart from equity, debt funds registered an inflow of Rs2.19 lakh crore in the month under review after seeing a withdrawal of Rs2.02 lakh crore in March. Overall, the mutual fund industry experienced an infusion of Rs2.77 lakh crore in April after the typical quarter-end outflows of Rs1.64 lakh crore in the preceding month. The inflow has lifted the industry’s assets under management to a record Rs70 lakh crore as of April from Rs 65.74 lakh crore at March-end. According to the data, equity-oriented mutual funds saw an inflow of Rs 24,269 crore in April, lower than Rs25,082 crore in March. In February, such funds witnessed an inflow of Rs 29,303 crore, Rs39,688 crore in January and Rs41,156 crore in December. The decline in inflow is due to concerns over potential US tariffs and a shift in investor preference toward debt and hybrid strategies, Ankur Punj MD of Equirus Wealth said.

Himanshu Srivastava, Associate Director (Manager Research), Morningstar Investment Research India, said, “despite the decline, the quantum of flows remains significant, especially against the backdrop of a challenging global landscape and escalating geopolitical tensions between India and Pakistan following the Pahalgam terrorist attack on April 22. Within the equity fund categories, Flexi Cap Funds recorded the highest inflows in April, attracting Rs 5,542 crore.