Equity MF inflows jump 56% to Rs 40,450 crore in March; debt sees sharp outflows: AMFI data

Equity mutual fund inflows rose sharply to Rs 40,450 crore in March, up from Rs 25,978 crore in February, according to data released by the Association of Mutual Funds in India (AMFI).

The strong inflows come despite continued volatility in equity markets, indicating sustained investor participation in market-linked investment products.

However, the overall mutual fund industry recorded net outflows of Rs 2.39 lakh crore in March, compared with net inflows of Rs 94,543 crore in February, largely due to significant redemptions in debt funds.

Debt mutual funds saw massive net outflows of Rs 2.94 lakh crore during the month, reversing the Rs 42,106 crore inflows seen in February. Such sharp swings are typically driven by institutional and treasury movements, especially toward the end of financial periods.

Hybrid schemes also witnessed outflows of Rs 16,538 crore in March, compared with inflows of Rs 11,983 crore in the previous month, suggesting some pullback from balanced investment strategies.

Meanwhile, ‘other schemes’, including ETFs, recorded inflows of Rs 30,768 crore, higher than Rs 13,879 crore seen in February, providing some support to overall industry flows.

Solution-oriented schemes, including retirement and children’s funds, continued to see steady inflows at Rs 256 crore, broadly in line with Rs 247 crore in February.

Closed-ended and interval schemes recorded inflows of Rs 226 crore during the month.

Gold exchange-traded funds (ETFs) saw inflows of Rs 2,266 crore in March, lower than Rs 5,255 crore in February, indicating some moderation after recent strong inflows into the category.

Overall, the data indicates a divergence in investor behaviour, with strong and rising participation in equity funds even as large institutional outflows from debt funds weighed on total industry flows.