Whalesbook
Flexi-Cap Funds Drive Record March Mutual Fund Inflows
Mutual fund investors poured a substantial Rs 40,450 crore into equities in March, marking a strong month for the sector. Flexi-cap funds were a major driver, attracting Rs 10,054 crore, a significant increase from Rs 6,924 crore in February. This segment's performance underscores investor confidence in flexible allocation strategies.
Parag Parikh Flexi Cap Leads Category
Parag Parikh Flexi Cap Fund attracted Rs 3,950 crore in March, leading the flexi-cap category. HDFC Flexi Cap Fund followed in second place, with ICICI Prudential Flexi Cap Fund in third.
These funds show contrasting approaches to market conditions. Parag Parikh Flexi Cap Fund held about 17.5 percent in cash, ready to invest during market dips. In contrast, HDFC Flexi Cap Fund lowered its cash to 4.5 percent, signaling active deployment, while ICICI Prudential Flexi Cap Fund remained nearly fully invested with around 3.7 percent cash. Parag Parikh's fund also maintains a consistent 10-11 percent overseas exposure for added diversification.
Multicap Funds Show Steady Growth
Multicap funds attracted Rs 2,981 crore in March, up from Rs 1,933 crore in February, returning to their typical inflow range. Kotak Multicap Fund was the top performer in this segment with Rs 911 crore, followed by Nippon India Multi Cap Fund and HDFC Multi Cap Fund.
Unlike the varied cash strategies in flexi-caps, multicap funds generally stayed under 2.5 percent cash. Funds like Kotak Multicap, Nippon India Multi Cap, and HDFC Multi Cap are largely fully invested, reflecting a category strategy to remain invested across market caps and capture market movements.