Equity-oriented mutual fund schemes witnessed a net inflow of Rs 40,450 crore in March, marking an increase of 56 per cent from the preceding month, reflecting sustained investor confidence in equities despite market volatility and heightened geopolitical tensions.
The inflows were largely driven by strong participation in Flexi Cap, Mid Cap and Small Cap funds, which together accounted for a significant share of the total net additions.
Moreover, monthly contributions through SIPs (Systematic Investment Plans) rose to Rs 32,087 crore from Rs 29,845 crore in the preceding month, according to the data released by the Association of Mutual Funds in India (Amfi).
Going by the data, equity inflows rose to Rs 40,450 crore in March from Rs 25,978 crore in February.
Within the equity segment, Flexi Cap funds led the category with net inflows of over Rs 10,000 crore, followed by Small Cap funds at Rs 6,263 crore and Mid Cap funds at Rs 6,063 crore.
While most categories recorded positive flows, Dividend Yield and Equity Linked Savings Scheme (ELSS) funds saw marginal outflows due to some profit booking or portfolio rebalancing.
Meanwhile, gold exchange-traded funds saw inflows of Rs 2,266 crore in March, which was much lower than the Rs 5,255 crore seen in February.
Overall, the industry recorded a net withdrawal of Rs 2.4 lakh crore in March after witnessing an inflow of Rs 94,530 crore in February. This was contributed by a huge outflow of Rs 2.95 lakh crore in the debt funds.
The outflow has pulled the industry's assets under management to Rs 73.73 lakh crore in March-end from Rs 82.03 lakh crore in February-end.