2025 marked a shift in investor preference when it comes to MF schemes.
Retail investors' equity portfolios have significantly underperformed benchmark indices over the past 16 to 18 months.
Net inflows into equity mutual funds (MFs) moderated for the second straight month in September, declining 9 per cent during the month to Rs 30,422 crore. The slowdown came as redemptions from active equity schemes rose 30 per cent month-on-month (M-o-M) to a one-year high of around Rs 36,000 crore.
Inflow in equity mutual funds dropped by 22 per cent to Rs 33,430 crore in August primarily due to a sharp fall in new fund offers (NFOs), data released by the Association of Mutual Funds in India (AMFI) showed on Wednesday. Also, the latest fund infusion by investors marks the 54th consecutive month of net inflows into the segment.
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For every 100 rupees, households invested Rs 45.2 in mutual funds and equities in 2024-2025.
Cash holdings of equity mutual fund (MF) schemes moderated in September amid a slowdown in fresh inflows. Equity MF schemes held cash worth Rs 1.76 trillion at the end of September 2025 - about Rs 400 crore lower than the previous month, according to a report by Nuvama Alternative & Quantitative Research.
Inflows into equity mutual fund (MF) schemes declined for the third month in a row in March even though the equity market recovered sharply. Equity MF schemes raked in a net Rs 25,082 crore in March, down 14 per cent from February.
'The net inflows into MF schemes may also have been lower last month, with investors booking profit and taking a more measured approach amid elevated valuations.'
Inflows into equity mutual fund (MF) schemes declined in May, logging their lowest tally in 13 months at Rs 19,013 crore. It came even as the gross systematic investment plan (SIP) inflows surged to a record high of Rs 26,688 crore.
Inflow in equity mutual funds dipped 3.24 per cent to Rs 24,269 crore in April amid continued market volatility against the backdrop of escalating tensions between India and Pakistan following the Pahalgam terrorist attack. This was the fourth consecutive month of decline in inflow in equity funds.
Inflows into equity mutual fund (MF) schemes declined for a fourth consecutive month in April, even as systematic investment plan (SIP) inflows reached a record high of about Rs 26,632 crore.
'Equities may not outperform every year, but if they do so seven times out of 10, it's an asset class worth relying on.'
The ratio of MF assets under management to total bank deposits has more than doubled in 10 years.
Mutual funds (MFs) - flush with cash amid record inflows in July - invested heavily in the Rs 25,000-crore qualified institutional placement (QIP) of India's largest lender State Bank of India (SBI). Fund managers acquired SBI shares worth Rs 10,200 crore last month, making the lender their biggest buy in July.
Equity mutual funds witnessed a remarkable surge in inflows to nearly Rs 4 lakh crore in 2024, more than double the amount recorded in the preceding year, reflecting strong investor confidence and a continued shift towards long-term investing, particularly through Systematic Investment Plans (SIPs).
Ask rediffGURU Naveenn Kummar your insurance mutual fund and personal finance-related questions.
Ask rediffGURU Naveenn Kummar your insurance mutual fund and personal finance-related questions.
Inflows into mutual funds' equity schemes increased by over 14 per cent on-month to Rs 41,156 crore in December, even as market volatilities continued. The small and midcap schemes of mutual funds continued to attract investor interest with inflows touching record highs during the month, despite the concerns being expressed about the two segments for the risk they portend, industry body Amfi said.
'Investors who remain calm, consistent, and disciplined through short-term volatility are usually the ones who benefit most in the long run.'
The top 20 fund houses held 6.8 per cent of their portfolios in cash as of May 31, down from a record high of 7.2 per cent in April 2025.
New investor additions by mutual funds (MFs) have slowed dramatically in recent months, indicating that market correction and a rise in volatility are somewhat dimming the appeal of equity schemes. MFs have onboarded 300,000 new investors in April 2025, the lowest in 22 months.
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The fear of losing purchasing power due to inflation and low-interest rates has led many to explore safe alternatives to fixed deposits with high returns
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'The rise in SIP contributions has created a pool of long-term MF assets that can be pledged for loans.'
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Investors pumped in a record Rs 40,608 crore into equity mutual funds in June, 17 per cent higher than in May 2024, industry body Amfi said on Tuesday. The flows into the systematic investment plans (SIPs) also reached a new high at Rs 21,262 crore for the month, which was higher than the previous high of Rs 20,904 crore recorded in May, it said. The net assets under management (AUM) for the entire MF industry on equity schemes stood at Rs 27.67 lakh crore, while the same from SIPs was Rs 12.43 lakh crore, the body said.
Mutual funds (MFs) reinforced their record monthly inflows in October with an investment of Rs 87,000 crore (up to October 29), softening the downside pressure on domestic markets. Their prior record for monthly inflows was Rs 48,139 crore in May. This unprecedented monthly buying partially countered record monthly sales by foreign portfolio investors (FPIs) of Rs 1.1 trillion last month.
The net inflows into active equity mutual fund (MF) schemes registered more than a twofold month-on-month rise in August, crossing Rs 20,000 crore, the highest in five months. This rise in net inflows was boosted by an 18 per cent growth in gross investments, driven by a record Rs 15,800 crore inflow through the systematic investment plan (SIP) route and Rs 5,000 crore collected by seven new fund offers (NFOs) in the active equity space, reveals data released by the Association of Mutual Funds in India (Amfi). Moreover, redemptions moderated in August, declining by 19 per cent to Rs 24,580 crore, after staying elevated in the previous three months owing to profit booking.
'The correction in the markets in the initial part of August provided investors a good buying opportunity.'
Inflows into equity mutual funds (MFs) continued their strong momentum in July, despite the market volatility triggered by the Union Budget.
The recently-created flexi-cap fund category is emerging as the hottest segment in the Rs 11-trillion equity mutual funds (MFs) space. Buoyed by the success of ICICI Prudential Flexicap Fund, other MFs are lining up new fund offerings (NFO) in this segment. Industry players say the flexi-cap category could emerge as the biggest segment in the equity MF space. Recently, ICICI Pru Flexicap's NFO collected a record Rs 10,200 crore.
Mutual Fund inflows in FY25 have already reached two-thirds of the total inflows seen in the entire FY24, with net inflows standing at Rs 1.3 trillion.
'Indian investors have always been debt-heavy but with growing financial awareness they are getting comfortable with equities.'
'Those satisfied with returns and not expecting further rally could be booking profits and also stopping SIPs.'
A buoyant equity market, coupled with an improved performance of mutual funds (MFs) on the returns chart, has heightened retail investors' appetite for equities. In the past few months, equity MF schemes have seen a surge in fresh investments through both lump sum (one-time investments) and systematic investment plan (SIP) routes. During the August-September 2023 period, equity MF schemes recorded net lump sum investments of Rs 35,270 crore, compared to just Rs 5,550 crore in the previous three months, according to data from the Association of Mutual Funds in India (Amfi).
The mutual fund industry's QAAUM (Quarterly Average Assets Under Management) was up 37 per cent year-on-year (Y-o-Y) (9 per cent Q-o-Q) to hit Rs 59 trillion (end Q1FY25). The equity segment grew 55 per cent Y-o-Y and equity formed 56 per cent of total AUM, up 49 per cent in Q1FY24. Sequentially, AUM grew by Rs 5 trillion.
A strong influx of 11 equity new fund offers (NFOs) in June, particularly within the thematic space, helped mutual funds collect Rs 14,370 crore - the highest ever via such introductory offers. This surpassed the previous high recorded in July 2021, where four NFOs accumulated Rs 13,709 crore, with ICICI Prudential MF's flexicap NFO alone mobilising Rs 9,808 crore.
Gross inflows into active equity mutual fund (MF) schemes dipped 34 per cent month-on-month (MoM) -- to Rs 25,400 crore -- in April as investors applied brakes on lump sum investments amid a sharp upwards movement in the market. Gross inflows for March stood at Rs 38,641 crore. The sharp decline pulled the net inflows to a five-month low of Rs 6,480 crore, shows data released by the Association of Mutual Funds in India (Amfi).
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