MUMBAI: Despite volatile markets driven by geopolitical tensions, investors continued to invest in equities, debt, and gold through the mutual fund route in April. Data from the Association of Mutual Funds in India (AMFI) revealed that net inflows into equity funds stood at Rs 38,440 crore, marginally lower than Rs 40,450 crore recorded in March. This marked the 62nd consecutive month of net inflows into equity schemes.
Debt Funds See Massive Reversal
In contrast, debt funds witnessed a significant reversal, with net inflows of Rs 2.47 lakh crore in April, compared to outflows in previous months. This shift indicates a growing preference for fixed-income instruments amid market uncertainty.
SIP Flows Dip Slightly
Gross inflows through systematic investment plans (SIPs) were slightly lower at Rs 31,115 crore in April, down from Rs 32,087 crore in March. The March figure had shown an unusual spike due to some end-February SIP mandates being processed in March.
Investor Preference for Balanced Allocation
According to Bhautik Ambani, CEO of AlphaGrep Mutual Fund, the April flows suggest that investors are becoming more balanced and allocation-focused rather than purely chasing returns. "Even as overall equity inflows moderated, multi-asset allocation funds continued to attract strong inflows of over Rs 5,000 crore, highlighting growing investor preference for diversified strategies that can navigate volatility across asset classes," he said.
Gold ETFs Also Attract Inflows
Investors also showed interest in gold exchange-traded funds (ETFs), which recorded net inflows of Rs 3,040 crore in April, reflecting continued demand for safe-haven assets.
