By Sanjay Agarwal, Senior Director, CareEdge Ratings
‘The mutual fund industry’s assets under management increased by 6.47% m-o-m to Rs.70 lakh crore buoyed by inflows in debt as well as equity mutual funds despite market volatility due to various macro-economic factors and geopolitical events.
The growth in debt fund net inflows was at the shorter end of the curve as over 96% of the inflows were in the overnight, liquid, ultra short duration, low duration, and money market funds. These debt inflows have followed historical trends after last month’s quarter end outflows. Meanwhile credit risk funds have continued to witness steady net outflows for over three years. Net equity inflows have remained positive for the last 50 months, witnessing Rs 0.24 lakh crore net inflows in April 2025 with all equity categories registering net inflows for the month apart from ELSS funds. However, net inflows declined by 3% sequential compared to March 2025. Large cap funds bucked this trend recording higher sequential inflows for April 2025. Other ETFs also witnessed a 50-month high inflows of over Rs 0.19 lakh crores. Additionally, during April 2025, 7 open-ended NFOs were floated which collectively mobilised Rs.0.03 lakh crore with index funds accounting for 49% share.
Given the ongoing international trade tariffs negotiations, the interest rate scenario, geopolitical tensions between India and Pakistan, concerns about the outlook for global economic growth, investors’ willingness to invest in such conditions will be a key monitorable for the next two to three months.’’