The Indian mutual fund industry saw a significant dip in equity fund inflows for March 2025, according to the latest report by the Association of Mutual Funds in India (AMFI).
Inflows decreased by Rs 4,221 crore, falling to Rs 25,082 crore from Rs 29,303 crore in February.
The decline comes amidst a backdrop of global instability caused by trade tensions, rising interest rates, and concerns surrounding economic growth, leading many investors to adopt a wait-and-watch approach before committing fresh funds.
Despite the slowdown in new investments, the total equity Assets Under Management (AUM) climbed to ₹29.5 lakh crore, driven by robust gains in the stock market and the consistency of Systematic Investment Plans (SIPs). Overall, the mutual fund industry’s total AUM expanded to ₹65.7 lakh crore from ₹64.5 lakh crore a month earlier.
The AMFI data also revealed significant outflows from debt and liquid funds, amounting to ₹1.63 lakh crore. Corporations and institutions withdrew funds to meet year-end financial requirements.
While equity inflows may have slowed, the mutual fund sector’s overall growth showcases resilience despite global economic challenges.