Equity Fund Inflows Jump 55% Despite March Market Drop

MUTUAL-FUNDS
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AuthorAnanya Iyer|Published at:
Equity Fund Inflows Jump 55% Despite March Market Drop
Overview

Equity mutual funds saw a strong 55.5% surge in net inflows during March, hitting ₹40,366 crore. However, overall assets under management (AUM) dropped 10.1% to ₹73.73 lakh crore, primarily due to market volatility and a broad-based equity correction. AMFI data shows continued investor participation in equities despite weaker market performance.

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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.

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Disclaimer:This content is for educational and informational purposes only and does not constitute investment, financial, or trading advice, nor a recommendation to buy or sell any securities. Readers should consult a SEBI-registered advisor before making investment decisions, as markets involve risk and past performance does not guarantee future results. The publisher and authors accept no liability for any losses. Some content may be AI-generated and may contain errors; accuracy and completeness are not guaranteed. Views expressed do not reflect the publication’s editorial stance.