Amid market volatility and concerns over Trump tariffs, March 2025 witnessed a decline in overall mutual fund investments.
Mutual Funds: March 2025 saw a decrease in mutual fund investments. Equity inflow dropped 14% to ₹25,082 crore, while debt funds experienced a significant outflow of ₹2.02 lakh crore.
14% Decline in Equity Mutual Fund Investments
Investments in Equity Mutual Funds decreased to ₹25,082 crore in March 2025, a 14% drop from ₹29,303 crore in February 2025. This decline indicates increased investor caution and market fluctuations.
Slight Decrease in SIP Inflow
Total inflow through Systematic Investment Plans (SIPs) amounted to ₹25,926 crore in March, slightly lower than ₹25,999 crore in February. While a decline persisted compared to January and December, this figure reflects the long-term commitment of retail investors.
Investor Interest in Flexi Cap and Small Cap Funds
March saw the highest inflow of ₹5,615 crore in Flexi Cap Funds, followed by Small Cap Funds with ₹4,092 crore. Mid Cap Funds witnessed an inflow of ₹3,438 crore.
Sharp Decline in Sectoral and Thematic Funds
Investments in Sectoral/Thematic Funds shrank to ₹170 crore in March, a nearly 97% drop from ₹5,711 crore in February. This category reflects changing investor preferences.
₹2.02 Lakh Crore Outflow from Debt Mutual Funds
Debt Funds saw a massive outflow of ₹2.02 lakh crore in March, contrasting with an inflow of ₹6,525 crore in February. The largest withdrawals were from Liquid Funds (₹1.33 lakh crore) and Overnight Funds (₹30,015 crore). Credit risk funds and gilt funds saw the least outflow.
Outflow from Hybrid Funds as well
March witnessed a total outflow of ₹946 crore from Hybrid Funds. Arbitrage Funds, Equity Savings Funds, and Conservative Hybrid Funds saw outflows of ₹2,854 crore, ₹561 crore, and ₹271 crore, respectively. Conversely, Multi-Asset Allocation Funds recorded an inflow of ₹1,670 crore, while Balanced Advantage and Aggressive Hybrid Funds saw investments of ₹776 crore and ₹293 crore, respectively.
