Mutual Funds

India’s mutual fund industry witnessed a moderation in investor inflows during April, with equity-oriented schemes attracting net investments of Rs. 38,440 crore, according to data released by Association of Mutual Funds in India. The figure represents a 5 per cent decline compared with the previous month, signaling a cautious shift in retail investor sentiment amid evolving market conditions. Systematic Investment Plan contributions also softened, falling to Rs. 31,115 crore from Rs. 32,087 crore recorded in March.

India’s equity mutual fund landscape demonstrated remarkable resilience in March, with net inflows rising sharply to Rs 40,450 crore, reflecting a 56 percent increase over the previous month. The surge comes despite ongoing market volatility and global geopolitical uncertainties, signaling sustained investor confidence in long-term equity growth. Key contributors included Flexi Cap, Mid Cap, and Small Cap funds, which attracted significant capital. Additionally, Systematic Investment Plan (SIP) contributions reached record levels, underscoring disciplined retail participation.

The Securities and Exchange Board of India (SEBI) has announced a framework allowing mutual funds to undertake intraday borrowings, effective April 1, 2026. The regulatory move is designed to address timing mismatches between fund inflows and outflows, particularly in liquid and overnight schemes, where redemption payouts often precede the receipt of maturity proceeds from instruments like TREPS and reverse repos.