Mutual Fund Inflows Surge in March, Top Schemes See Significant Capital Inflows

Equity Mutual Funds See Sharp Surge in Inflows Amid Volatility

Equity mutual funds experienced a significant surge in inflows in March, despite market volatility driven by geopolitical tensions and rising crude prices. According to data released by the Association of Mutual Funds in India on April 10, equity inflows jumped to Rs 40,450 crore, up substantially from Rs 25,978 crore in February.

Investors continued to channel money into equities, signaling sustained confidence in long-term market prospects. Despite the uncertainty triggered by the Iran conflict and global cues, investors used the market volatility as an opportunity to buy, rather than stepping away.

Large-Cap Funds Lead the Charge

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Large-cap funds saw inflows rise to Rs 2,998 crore in March, compared to Rs 2,112 crore in February. This indicates a gradual return of interest in relatively stable, blue-chip strategies. Among these, a few schemes stood out in terms of investor preference.

The Nippon India Large Cap Fund recorded the highest inflow during the month, followed by the ICICI Prudential Large Cap Fund and the HDFC Large Cap Fund.

Mid-Cap Funds Witness Strong Rebound

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Mid-cap funds saw a sharp pickup in inflows, attracting Rs 6,064 crore in March, up from Rs 4,002.99 crore in February. This signals renewed investor interest in relatively high-growth segments. Among mid-cap schemes, the HDFC Mid Cap Fund recorded the highest inflow during the month, attracting Rs 1,475.70 crore, according to ACE MF data.

The sharp rise in flows suggests that investors are increasingly willing to take on measured risk, using recent corrections as an entry point into mid-cap stocks.

Small-Cap Funds Also Witness Strong Rebound

Small-cap funds also witnessed a strong rebound, attracting Rs 6,264 crore in March, up from Rs 3,881.06 crore in February. Among small-cap schemes, the Bandhan Small Cap Fund recorded the highest inflow during the month, attracting Rs 1,571.93 crore.

The surge in flows into small-cap funds, typically considered the riskiest segment, means that investor risk appetite is returning, with many looking to capitalise on sharp corrections in this space.