Equity mutual fund inflows ease to ₹38,426 crore in April; small and mid cap buck trend
Mutual fund equity schemes recorded net inflows of ₹38,426 crore in April, compared with ₹40,366 crore in March, reflecting a decline of about 4.8% month-on-month.
Within equity categories, large-cap funds registered net inflows of ₹2,524.6 crore in April, down from ₹2,997.8 crore in the previous month, a decline of around 15.8% month-on-month.
Small-cap funds posted net inflows of ₹6,885.9 crore in April versus ₹6,263.6 crore in March, an increase of approximately 9.9% month-on-month.
Mid-cap funds saw inflows of ₹6,551.4 crore in April compared with ₹6,063.5 crore in the previous month, reflecting a rise of about 8% month-on-month.
Among other categories, gold exchange-traded funds (ETFs) recorded inflows of ₹3,040.3 crore in April, higher than ₹2,266 crore in March.
ETF inflows across broader segments stood at ₹10,754.9 crore in April, compared with ₹19,802 crore in the previous month.
Sectoral and thematic funds saw inflows of ₹1,949.4 crore in April versus ₹2,699 crore in March.
In the debt category, credit risk funds reported outflows of ₹1,317.7 crore in April compared with outflows of ₹329.66 crore in March. ELSS funds recorded outflows of ₹567.7 crore versus ₹437.3 crore in the previous month.
Corporate bond funds reported inflows of ₹6,196.5 crore in April, compared with outflows of ₹15,292.6 crore in March.
Liquid funds saw outflows of ₹1.65 lakh crore in April against outflows of ₹1.34 lakh crore in March.
Dividend yield funds recorded outflows of ₹20.6 crore in April compared with outflows of ₹59.21 crore in the previous month.
Overall, the mutual fund industry’s assets under management (AUM) stood at ₹81.92 lakh crore in April, compared with ₹73.73 lakh crore in March, marking an increase of around 11.1% month-on-month.
Commenting on the trend, Sandeep Bagla, CEO of Trust Mutual Fund, said equity inflows have moderated amid global uncertainty.
“While equity markets bounced back quite smartly, the news flow reflected uncertainty in global markets, especially around Brent and the Strait of Hormuz. People are aware there is going to be uncertainty in equity markets, which is why we are seeing overall equity inflows down about 5%,” he said.
“I wouldn’t see it as weakness in inflows. Investors are cautious but still constructive, and instead of lump-sum investments, they are spreading allocations over three to four months. This uncertainty will lead to some softness in inflows,” he added.
DP Singh, Deputy Managing Director & Joint CEO at SBI Mutual Fund, said equity flows remained broadly stable. “Equity flows are similar to what it was last month. If you look at SIPs, February was around ₹40,000 crore and now it is ₹38,000 crore. So the trend is continuing, and I am not reading much into this number. This is business as usual,” he said.