Equity Mutual Fund Inflows Decline Amidst Market Volatility and Geopolitical Concerns
In April, equity mutual funds experienced a 3.24% decline in inflows due to market concerns over US tariffs and geopolitical tensions. Despite this, SIP contributions hit a record high, and debt funds saw a strong recovery. The mutual fund industry reached Rs 70 lakh crore in assets under management.
- Country:
- India
Equity mutual funds witnessed a 3.24% dip in inflows in April, dropping to Rs 24,269 crore, as investors turned cautious due to potential US tariffs and escalating geopolitical tensions between India and Pakistan following a terrorist attack in Pahalgam. This marks the fourth consecutive month of declining inflows amid volatile markets.
However, contributions from Systematic Investment Plans remained robust, reaching a record Rs 26,632 crore, reflecting a growing investor confidence in mutual funds as a tool for long-term savings. This has been driven by an increasing number of contributing accounts which now total 8.38 crore according to Amfi's latest data.
In contrast, the debt funds sector showed strong recovery with Rs 2.19 lakh crore inflows, reversing the March outflows. This rebound helped the mutual fund industry push its assets under management to a historic Rs 70 lakh crore by April's end, demonstrating investor confidence in fixed income instruments amidst market uncertainties.
(With inputs from agencies.)
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