HDFC Bank's share in active mutual fund schemes has fallen to multi-year lows, despite overall MF ownership in the bank rising, as the stock faces weak performance, soft margins, and governance concerns.
International mutual fund schemes have seen a significant resurgence in investor interest, attracting approximately Rs 7,600 crore in net inflows over the past year, a stark reversal from previous outflows, driven by their strong outperformance against domestic markets and limited AI-linked investment opportunities in India.
"When you have more liquidity than good investment opportunities, there is no reason for MFs to sell a winning trade."
Investments under the framework would remain voluntary for employees.
Indian mutual fund holdings in overseas equity securities increased by 37.5 per cent year-on-year to approximately '93,602 crore by March-end, according to RBI data. This growth is attributed to mark-to-market gains from a global market rally and heightened investor interest, with the US remaining the primary destination for these investments.
Domestic institutional investors (DIIs), driven by the popularity of mutual funds, have emerged as significant stabilising forces for Indian capital markets amidst global volatility and foreign portfolio investment (FPI) outflows, according to Sebi whole-time member Amarjeet Singh.
Smallcap funds topped the net inflow chart for the second consecutive month, as investors poured record Rs 7,973 crore into one of the best-performing MF categories.
Smallcap funds have emerged as the primary beneficiaries of the systematic investment plan (SIP) wave in Indian mutual funds over the past five years, with their SIP assets surging to approximately 1.83 trillion by March 2026, a fivefold increase.
rediffGURU Ulhas Joshi answers your mutual fund queries.
Foreign investors have largely been exiting one part of the market while domestic investors have been enthusiastically accumulating another, points out Debashis Basu.
Ask rediffGURU and tax expert Mihir Tanna your income tax-related questions.
'The Rs 30,954 crore inflows recorded in May 2026 reflects around 16 per cent year-on-year rise.'
Net mutual fund inflows into active equity schemes in India plummeted by 40 per cent month-on-month in May, reaching a one-year low of 22,908 crore, primarily due to weaker lump-sum investments and increased redemptions amidst significant market volatility and global uncertainties.
The SIF vertical, which allows MFs to offer complex products to relatively sophisticated investors, has managed to garner scale in just seven months of the launch of the first products.
The ratio of MF assets under management to total bank deposits has more than doubled in 10 years.
Ask rediffGURU and PF, MF and insurance expert Purshotam Lal your mutual fund, insurance and personal finance-related questions.
SIP inflows into active equity schemes from areas beyond the top 30 cities (B30), which first crossed this milestone in September 2025, stood at Rs 10,080 crore in October, industry data shows.
MFs offer scale, simplicity, liquidity, and tax efficiency, and are an excellent vehicle for disciplined SIP investing. PMS is better suited for larger portfolios with equity allocation of Rs 3 crore to Rs 5 crore.
Indian mutual funds have significantly reduced their exposure to the information technology (IT) sector, with holdings now at an eight-year low of 6.7% in April 2026, driven by weak earnings growth, global demand slowdown, and concerns over AI-led disruption.
Ask rediffGURU and PF, MF and insurance expert Purshotam Lal your mutual fund, insurance and personal finance-related questions.
Fund managers are divided on the prospects for beaten-down information technology (IT) stocks, reflected in the wide variance in equity mutual funds' (MFs) sector exposure. An analysis by Nuvama Alternative & Quantitative Research shows that while six large fund houses were overweight the sector relative to its weight in the Nifty 200 index, five were underweight as of October 2025. UTI MF had the highest exposure at 17.8 per cent, while SBI MF sat at the bottom with 5 per cent.
Despite similar tax treatment, debt MFs enjoy certain advantages over FDs.
Net investments into equity mutual fund schemes in India remained elevated at approximately 38,440 crore in April, despite a slight dip from March's high and a 3% month-on-month decline in Systematic Investment Plan (SIP) inflows.
Investors who constantly hop between 'top-performing' funds often end up earning far lower returns than the very funds they invest in -- simply because they enter late and exit early. Best investors don't chase returns, they chase discipline, says Ramalingam Kalirajan.
'Every year we import approximately $70 billion worth of gold -- closer to $72 billion in 2025-2026, an all-time record.' 'There is no parallel for this anywhere in the world. And this love for gold will not disappear overnight.'
From the financial year 2025-2026, the government has introduced a new column in the tax return form for presumptive taxpayers, requiring them to disclose their year-end investments. This requirement was not present last year.
Ask rediffGURU Naveenn Kummar your insurance mutual fund and personal finance-related questions.
The competitive intensity in the mutual fund (MF) industry is moving beyond scheme performance, cost structures, and distribution. In recent months, several fund houses have rationalised exit loads applicable on redemptions.
The continued MF buying has pushed the equity holding of MFs to over Rs 50 trillion for the first time.
For every 100 rupees, households invested Rs 45.2 in mutual funds and equities in 2024-2025.
In November, six primary market issuances accounted for more than 13,000 crore of net equity investments by MFs.
'AUM reached an all-time high of Rs 79.9 trillion in October 2025, driven by strong retail participation and record SIP inflows of Rs 29,529 crore from over 94.5 million contributing accounts.'
Uncertainty stemming from the US-Iran conflict has significantly impacted India's mutual fund industry, leading to a sharp decline in new fund offers (NFOs) in March, despite numerous regulatory approvals. This geopolitical tension, coupled with existing market strain and distributor hesitation, has dampened investor sentiment and affected overall inflows.
Ask rediffGURU and PF expert Nitin Narkhede your mutual fund and personal finance-related questions.
'The day is not too far when the share of MFs alone will be greater than that of foreign institutional investors.'
With domestic markets turning choppy, investors are increasingly scouting for opportunities overseas to diversify portfolios and hedge against a weakening rupee.
Ask rediffGURU Reetika Sharma your insurance, mutual fund and personal finance-related questions.
'The volatility in the stock markets since September 2024 has hurt the pace of accretion of new investors.'
Retail investors' equity portfolios have significantly underperformed benchmark indices over the past 16 to 18 months.
Households should moderate large discretionary expenses for the time being.
'They should prioritise essential spending. They should maintain an emergency fund covering 6 to 12 months of expenses.'
