Equity Demand Surges Despite Market Woes
Equity mutual funds saw a notable 55.5% surge in net inflows during March, reaching a total of ₹40,366 crore. This increase signals sustained investor interest in equity schemes, even as overall market conditions faced turbulence. Exchange-traded funds (ETFs) were particularly popular, attracting ₹19,802 crore, a significant rise from ₹4,487 crore in February.
Assets Under Management Decline Amid Volatility
Despite strong inflows into equity funds, the overall mutual fund assets under management (AUM) saw a considerable 10.1% drop, falling to ₹73.73 lakh crore from ₹82.03 lakh crore in the prior month. Industry observers largely attribute this contraction not to large investor withdrawals, but rather to the general market downturn and a widespread equity correction that occurred in March.
Sectoral and Debt Fund Performance
While equity funds attracted significant capital, sectoral and thematic funds reported a more modest inflow of ₹2,699 crore. Gold ETFs also experienced lower inflows compared to February. In the debt fund category, liquid funds saw outflows totaling ₹1.34 lakh crore, often linked to year-end rebalancing activities. Corporate bond funds and credit risk funds also experienced outflows, suggesting a cautious stance in parts of the fixed-income market.