Equity MF Inflows At 11-Mth Low In Mar

New Delhi: Inflow in equity mutual funds (MFs) declined to an 11-month low at Rs25,082 crore in March primarily due to sharp redemption in sectoral and thematic funds amid continued market volatility spurred by tariff concerns. This was the third consecutive month of a decline in inflow in equity funds and also marks 14 per cent drop in inflow from February. The latest fund infusion by investors was the 49th consecutive month of net inflows into the segment. Moreover, inflows into systematic investment plans (SIP) came at Rs25,925 crore in March -- a four-month low. Before this, SIP inflow was Rs25,999 crore in February, Rs26,400 crore in January and Rs26,459 crore in December.

In the fiscal year 2024-25, the average monthly SIP contribution reached Rs24,113 crore, marking a significant increase from the Rs16,602 crore observed in the preceding fiscal year. According to data released by Association of Mutual Funds in India (Amfi), equity-oriented MFs saw an inflow of Rs25,082 crore in March, way lower than Rs29,303 crore in February. The flow in March was at the lowest level since April 2025, when equity mutual funds attracted Rs18,917 crore. ITI Mutual Fund CEO Jatinder Pal Singh attributed the decline in inflows to higher redemption in sectoral and thematic funds.

“This slowdown was largely driven by a sharp reduction in investments into sectoral and thematic funds, which had previously seen strong traction,” said Nehal Meshram, senior analyst (manager research), Morningstar Investment Research India.