Equity Mutual Fund Inflows Decline 44% In April: AMFI Data

Inflows into equity mutual funds fell to the lowest in three months as volatility surged amid the ongoing geopolitical crisis and foreign selling.

Net inflows into equity and equity-linked schemes fell 44% over the previous month to Rs 15,890.3 crore in April, according to data released by the Association of Mutual Funds in India.

Still, that's the fourteenth straight month of investments into such stock plans.

Indian equity benchmarks saw a volatile April after rebounding in March. The S&P BSE Sensex fell 3.7%, while the NSE Nifty 50 declined 3.2% during the month.

Category-Wise Trends

All segments continued to see inflows in April.

Small caps witnessed the highest investments among all categories, while large caps saw the least.

AMFI started reporting granular data since April 2019.

SIP Contribution

Monthly contributions into systematic investment plans fell to Rs 11,863.1 crore after hitting an all-time high of Rs 12,327.9 crore in March. That was the first time contributions crossed Rs 12,000 crore.

SIP AUM rose to Rs 5.78 lakh crore from Rs 5.76 lakh crore in March.

NS Venkatesh, chief executive officer at AMFI, in a conference call said April was a “good month” overall. “The decrease in SIP contribution was marginal, so it's not of any concern. Equity funds have stayed strong and performed well despite market volatility in April.”

Debt Funds

Liquid funds—used by companies to park short-term cash—witnessed inflows after a month.

Investors withdrew from credit risk funds for the fifth straight month.

Net Flows

All mutual fund schemes, debt and equity, saw a net inflow after a month. The investments were the highest since July 2021.

Average under management stood at Rs 38.88 lakh crore compared with Rs 37.7 lakh crore in March. Net AUM rose to Rs 38.03 lakh crore from Rs 37.56 lakh crore in the previous month.