Mutual fund AUM crosses ₹70 lakh crore for the first time in April: Motilal Oswal
India’s mutual fund industry crossed ₹70 lakh crore in assets under management (AUM) for the first time in April 2025. Motilal Oswal Financial Services attributed the growth to gains in liquid and equity funds, boosted by market momentum.
Despite the AUM high, equity inflows fell for the fourth month in a row. Investors turned cautious amid rich valuations and global uncertainty. In contrast, SIP inflows touched new highs, showing strong retail participation.
Liquid, equity funds lead AUM growth
AUM rose 6.5% month-on-month. Liquid funds added ₹1.56 lakh crore, equity funds ₹1.21 lakh crore, income funds ₹80,800 crore, and ETFs ₹33,500 crore.
Equity AUM alone stood at ₹33.5 lakh crore, up 3.8% from March. The Nifty gained 3.5% during the same period.
Equity inflows lose steam
Net equity inflows fell to ₹25,800 crore in April, a 12-month low. Redemptions dropped 1.8% to ₹39,800 crore.
Gross equity sales declined 5% to ₹65,600 crore. Investors likely held back due to stretched valuations or global risks.
SIPs remain strong
SIP inflows reached an all-time high of ₹26,630 crore. They rose 2.7% from March and 30.7% from a year ago.
This shows investors stayed committed to long-term investing despite market swings.
Fund managers shift focus
raised allocations to Private Banks, Oil & Gas, Automobiles, Consumer, and Telecom. They cut exposure to Technology, Capital Goods, NBFCs, Utilities, and Cement.
Private banks saw the biggest increase. Their weight in portfolios rose to 18.9%, the highest in 20 months.
HDFC Bank saw fund additions worth ₹15,700 crore. ICICI Bank got ₹11,820 crore, Axis Bank ₹8,110 crore, and IndusInd Bank ₹3,600 crore.Oil & Gas allocation rose to 6.4%, an eight-month high. Auto moved up to 8%. Technology fell to 8.3%, the third monthly cut in a row.
Mid- and small-cap bets rise
Funds bought 60% of Nifty Midcap 100 and 69% of Nifty Smallcap 100 stocks.
Patanjali Foods, Waaree Energies, NBCC, and Delhivery saw strong inflows.In mid-caps, Tata Technologies, Hindustan Zinc, and IDFC First Bank gained favour. In small-caps, NBCC, Delhivery, Dr Lal Pathlabs, and Godfrey Phillips stood out.
Top AMCs see equity gains
Equity value of the top 20 AMCs rose 3.7% month-on-month and 21.7% year-on-year.
Motilal Oswal MF led with a 6% jump. UTI MF and Nippon India MF gained 4.3% each. SBI MF rose 4.2%, and Axis MF 4%. Banking stocks top value additions
Banks dominated fund additions in April. Siemens, Infosys, Voltas, and Bajaj Finance saw declines.
This shift shows a preference for financials with stable earnings and growth visibility. “Fund managers are rotating towards structural growth themes,” said Motilal Oswal. “Private banks, oil & gas, and mid-cap opportunities lead the shift.”
Outlook stays positive
Equity inflows may be cooling, but record SIPs and strategic fund rotation signal strength.
The ₹70 lakh crore AUM milestone reflects confidence in India’s long-term growth.