India’s mutual fund industry recorded its highest-ever monthly inflows through Systematic Investment Plans (SIPs) in April, with investors contributing ₹26,632 crore, according to data released by the Association of Mutual Funds in India (AMFI) on Friday. The record-breaking figure highlights a significant surge in retail investor confidence, as global capital increasingly shifts toward emerging markets like India.
The inflows mark a significant milestone for Asia’s third-largest economy, where structured retail investments have gained momentum amid robust macroeconomic performance and improving corporate earnings. Industry experts suggest this trend could attract further international interest as India solidifies its position as a long-term investment destination.
Investor participation remained strong despite the closure or maturity of 1.36 crore SIP accounts in April. The total number of active SIP accounts rose to 8.38 crore, up from 8.11 crore in March, reflecting continued enthusiasm for mutual fund investing among Indian households. Furthermore, the month saw the creation of 46 lakh new SIP accounts—an increase over the 40.19 lakh accounts opened in March.
AMFI attributed the rise in closures to a deliberate clean-up exercise, adding that such account purging is expected to slow significantly starting in May.
“The sustained inflows underscore improving investor sentiment, supported by strong corporate earnings, resilient macroeconomic fundamentals, and a continued tilt towards equities as the preferred asset class,”— Himanshu Srivastava, Associate Director, Manager, Research, Morningstar Investment Research India.
Srivastava further noted that the spike in investment came despite the absence of significant new fund launches in April.
“Notably, the absence of any major new fund launches during the month indicates that investors largely allocated capital to existing schemes — a testament to their confidence in the long-term growth prospects of Indian equity markets.”
Total assets under management (AUM) across India’s mutual fund industry also hit a record high of ₹70 lakh crore in April, up from ₹65.74 lakh crore in March, showcasing broad-based investor confidence. The growth in AUM occurs even as net inflows into equity mutual funds have seen a marginal dip, reflecting a stable yet cautious optimism among investors.
Large-cap equity funds, which had experienced recent outflows, saw net inflows of ₹2,671.46 crore in April, up slightly from ₹2,479.31 crore in March. This shift suggests a renewed preference for relatively lower-risk investment categories.
Mid-cap funds attracted ₹3,313 crore, a slight dip from ₹3,438.87 crore in March, while small-cap funds continued to draw robust interest with ₹3,999.95 crore in inflows, only marginally lower than the ₹4,092 crore recorded the previous month.
India’s mutual fund market, particularly its SIP ecosystem, is increasingly seen as a case study for retail-led wealth creation. With global institutional investors eyeing the Indian market for its stability, demographics, and digital infrastructure, the country’s asset management industry may soon play a greater role on the international stage.
–Input IANS
