Equity Mutual Funds experienced significant growth in March, with actively managed funds reaching Rs 40,450.26 crore, the highest since July 2025, compared to Rs 25,977.81 crore in February, as per data from the Association of Mutual Funds in India (AMFI). Systematic Investment Plan (SIP) contributions also hit a record high of Rs 32,087 crore in March, up from Rs 29,845 crore in February, indicating sustained retail participation. However, the mutual fund industry overall faced net outflows of Rs 2.39 lakh crore during the month, primarily due to heavy withdrawals from debt-oriented schemes.
Market experts noted that the surge in inflows reflects continued retail engagement through SIP contributions, year-end portfolio allocations, and investors capitalizing on recent market corrections to invest in equities. The volatility stemming from the West Asia conflict provided appealing entry points for long-term investors, leading many to boost their allocations through mutual funds. In terms of equity categories, inflows rose across various segments, with flexi-cap funds attracting Rs 10,054.12 crore in March, up from Rs 6,924.65 crore in the previous month.
Mid-cap and small-cap funds also saw increased inflows at Rs 6,063.53 crore and Rs 6,263.56 crore, respectively, compared to Rs 4,002.99 crore and Rs 3,881.06 crore in February. Large-cap funds recorded inflows of Rs 2,997.84 crore, while sectoral and thematic funds maintained stable inflows at Rs 2,698.82 crore. Conversely, debt mutual funds experienced significant outflows of Rs 2.94 lakh crore in March, contrasting with inflows of Rs 42,106.31 crore in February.
Overnight and liquid funds were notable contributors to these outflows. Hybrid schemes and arbitrage funds also faced outflows of Rs 16,538.47 crore and Rs 21,113.70 crore, respectively, during the month. Gold Exchange-Traded Funds (ETFs) observed a decline in inflows to Rs 2,266 crore, nearly half of February’s Rs 5,254.95 crore. Despite this, New Fund Offerings (NFOs) raised Rs 3,985 crore through 24 launches in March, compared to Rs 4,979 crore from 21 schemes in February.
