April 2026 Sees Surge in Mutual Fund Inflows Led by BFSI and FMCG
In April 2026, sectors like BFSI, FMCG, and Healthcare led mutual fund inflows, despite net sell-offs in Auto and Utilities. Equity assets under management expanded by 11.9%, while cash levels in funds saw a 7.1% increase. A notable shift shows equity fund AUM rising from 36% to 52% since 2020.
The latest report from Ambit Institutional Equities reveals a strong preference by fund managers for sectors including Banking, Financial Services and Insurance (BFSI), Fast-Moving Consumer Goods (FMCG), and Healthcare in April 2026, as mutual funds invested heavily in these areas. Despite this preference, sectors like Auto and Utilities experienced net selling after accounting for sector performance.
The report highlighted a significant 11.9% growth in overall equity assets under management (AUM), which reached Rs 33.9 trillion by the end of April 2026. This growth was accompanied by a 7.1% increase in cash held by funds, totaling Rs 1.98 trillion. Although Systematic Investment Plan (SIP) flows slightly dipped to Rs 311 billion, net equity inflows increased marginally to Rs 434 billion, up from Rs 432 billion in March 2026.
As part of a long-term trend, the AUM of equity funds has climbed from 36% in April 2020 to 52% in April 2026, with a substantial 25% compound annual growth rate in the total domestic mutual fund AUM. This shift marks a notable increase in individual ownership, which rose from 44% in March 2014 to 60% in April 2026, with the top 30 cities maintaining the majority share of mutual fund volumes. (ANI)
(With inputs from agencies.)
Google News