FY27 may augur well for debt funds. Hybrid funds are the only category to have increased net collection in FY 25-26 where multi asset has been stellar performer with investors being more conservative and taking exposure even to gold
FinTech BizNews Service
Mumbai, April 11, 2026: Association of Mutual Funds in India (AMFI) released MF industry’s Monthly Data for March 2026 yesterday.
Highlights AMFI Mutual Fund Industry Monthly Data March 2026:
Mutual Fund Industry’s Net AUM stands at Rs 73,73,376.98 crores for the month of March 2026. Net AUM for the month of February 2026 was Rs 82,02,956.35 crores
The AAUM for the month of March 2026 is Rs 79,46,027.87 crores.
Click to know for further details covered on April 10, 2026 : https://fintechbiznews.com/finserv-mf-amcs/sip-assets-at-rs1510-tn-205-of-total-aum
Mr. Navneet Munot, MD and CEO of HDFC AMC:
1. March-26 saw SIP inflows at Rs32,087 crore, the highest ever, underscoring the growing preference for disciplined, long-term equity investing among Indian households. This trend reflects the increasing maturity and resilience of investors. It is also a testament to the consistent efforts of regulators, the industry, and the strong last-mile engagement by distribution partners.
2. Despite heightened volatility driven by geopolitical developments, domestic investors have remained steadfast, continuing to invest with conviction. This structural shift towards systematic investing augurs well for the long-term stability and depth of India’s capital markets.
3. SIP inflows reaching a record Rs32,087 crore in March-26 highlight the deepening trust of Indian investors in systematic, long-term wealth creation. Even amid global uncertainties, the steady participation from domestic investors reflects a structural shift towards financial discipline. This resilience, supported by strong regulatory frameworks and industry outreach, is strengthening the foundation of India’s capital markets.
Mr. Pankaj Shrestha, Head of Investment Services, PL Wealth Management:
“The strong net equity inflow of Rs40,450 crore in March, despite it being one of the most volatile months in the near term, reflects robust investor conviction in the long-term equity story. Rather than being deterred by short-term fluctuations, investors used the opportunity to increase their equity allocations. The record SIP inflow of Rs32,087 crore reflects growing investor discipline and a clear shift towards systematic investing.”
Karthick Jonagadla, investment manager on smallcase and Founder and CEO of Quantace Research
Domestic Flows Cushion India Against Global Stress
March 2026 AMFI data strengthens the Indian constructive case: households treated global stress as a buying opportunity, not a signal to retreat. Net equity inflows jumped to Rs40,450 crore from Rs25,978 crore in February even as industry AUM fell to Rs73.73 lakh crore from Rs82.03 lakh crore, showing that mark-to-market pain.
More important, the flow mix was distinctly pro-growth: flexi-cap and index funds alone absorbed Rs18,223 crore, while mid- and small-cap inflows together were about 4.1x large-cap inflows. That resilience arrived while FPIs pulled out a record Rs1,17,775 crore in March and the rupee hit record lows as West Asia tensions kept oil risks alive for an economy that still imports more than 80% of its crude.
From an Indian market perspective, domestic savings are no longer just supportive liquidity; they are an active shock absorber. That does not remove macro risk, but it does mean external volatility is increasingly being met by a deeper, steadier domestic bid.
Sanjay Agarwal, Senior Director, CareEdge Ratings:
Equity fund inflows remained resilient in March 2026, even as gold ETF inflows moderated. Equity mutual funds attracted strong inflows of Rs40,450 crore, a sharp increase from Rs25,978 crore in February, underscoring sustained investor participation in market-linked instruments despite ongoing equity market volatility. Notably, equity fund inflows have remained positive for five consecutive years and continue to account for a growing share of total industry assets.
Flows into other schemes, including ETFs, also strengthened, with inflows rising to Rs30,768 crore from Rs13,879 crore in the previous month, offering additional support to overall industry flows. In contrast, gold ETFs witnessed some cooling, with inflows declining to Rs2,266 crore in March from Rs5,255 crore in February. While this reflects moderation following a period of strong demand, investor interest in gold remains broadly intact.
Debt mutual funds, however, recorded substantial net outflows of Rs2.94 lakh crore during the month, reversing the Rs42,106 crore inflows seen in February. These outflows were largely the result of quarter-end institutional and treasury-related adjustments, particularly within liquid and short-term fund categories, rather than a fundamental shift in investor sentiment.
Overall, the data highlights a divergence in investor behaviour retail participation in equity funds continues to strengthen, while large institutional redemptions from debt funds weighed heavily on aggregate industry flows. Consequently, the mutual fund industry’s assets under management declined sequentially by 10.1% to Rs73.73 lakh crore in March 2026. This decline was driven by net outflows of Rs2.39 lakh crore during the month, compared with net inflows of Rs94,543 crore in February, reflecting seasonal debt fund redemptions and mark-to-market losses.
Additionally, 24 new fund offerings were launched in March 2026, collectively mobilising Rs3,985 crore. Passive funds, including index funds and ETFs, accounted for 42.1% of the total mobilisation, while thematic funds represented a 33.8% share.
Juzer Gabajiwala - Director- Ventura:
“Even though from feb 26 to mar 26 we have seen an increase in the equity collection on a year on year basis we have seen a drop by nearly 17% . Flexicap funds has received the highest amount 25-26 despite having underperformance as most funds are sticking more to largecaps. Debt funds have had a very muted year with collections dropping nearly 84% from last year. Taxation has played a very pivotal role in the investors mind while looking at debt funds. FY27 may augur well for debt funds. Hybrid funds are the only category to have increased net collection in FY 25-26 where multi asset has been stellar performer with investors being more conservative and taking exposure even to gold. Arbitrage funds are now taking the brunt due to expectations of lower returns due to increase in STT charges.”
