Gross equity collections have been flat. Investors continue to be cautious; Flows into funds with maturities beyond 1 year have been relatively muted. Equity and hybrid funds witnessed stable flows, supported by a strong SIP book and arbitrage fund inflows
FinTech BizNews Service
Mumbai, May 9, 2025: Association of Mutual Funds in India (AMFI) has released MF industry’s Monthly Data for April 2025. Here are views Of Experts On April 2025 AMFI Data:
Akhil Chaturvedi, Executive Director & Chief Business Officer, Motilal Oswal AMC
“Net sales have been flat at 24kcr, given the heightened volatility around the tariff concerns which has in generally kept investors cautious. Stability is good and no major slippages in SIP numbers is also encouraging. Large Cap category has grown against all other categories also signifies protection over growth for now.”
Madhu Nair, Chief Executive Officer at Union Asset Management Company
“Overall, a great start in terms of net flows for the mutual fund industry. The industry has touched an all-time high of almost Rs70 lakh crore. Debt Schemes with maturities up to 1 year have seen strong flows, reflecting the uncertainty in the minds of investors. Flows into funds with maturities beyond 1 year have been relatively muted. Equity and hybrid funds witnessed stable flows, supported by a strong SIP book and arbitrage fund inflows. ETFs have also contributed positively to industry flows. Overall flows of Rs2.76 lakh crore indicate the growing preference for mutual funds as an investment vehicle. Amid uncertain events, we urge investors to remain committed to their financial journey and asset allocation”.
Juzer Gabajiwala, Director, Ventura
‘Gross equity collections have been flat and net was a marginal dip. Investors continue to be cautious. In fact even the SIP collection has seen a fall. There is a sharp increase in Arbitrage funds as the yields are attractive due to high volatility in the equity markets. 1 month aggregate returns have been in excess of 7% pa. Debt funds have seen huge inflows post the year end impact of redemptions. Funds are mainly in short duration funds due to elevated YTMs. The gross collection is still lower than March 25. As compared to March 25 where we had seen net outflows in all categories, in April 25 it is restricted mainly to gilt and credit. NFOs have gone off the radar in April 25 due to lack of investors sentiment.’
Manish Mehta, National Head - Sales, Marketing & Digital Business, Kotak Mahindra AMC
Fixed income category saw a large inflow. Many institutional investors who redeem due to year end, invested back in categories like liquid, ultra-short term. Within equity, net flow could be attributed to the SIP flows. With market uncertainty, lump sum participation seems to be come down as investors are probably taking a waiting approach to fresh investments. Volatility is an investors friend and continuing to invest through SIP / STP would be the prudent approach at such times.
Ms. Suranjana Borthakur, Head of Distribution & Strategic Alliances, Mirae Asset Investment Managers (India)
“The recovery in mutual fund flows in April is encouraging, especially after the typical quarter-end outflows seen in March. Debt categories like liquid, overnight, money market, and ultra-short have seen a six-month high in inflows, which is a positive sign. Equity inflows have come down slightly to Rs24,000 crore, but overall flows across categories have remained quite consistent. It's also encouraging to see an uptick in large-cap flows, which aligns with the current market environment. For long-term portfolios, we continue to believe that mid- and small-cap allocations are essential for wealth creation. Sectoral funds witnessed a strong recovery — not driven by new NFOs, but by genuine investor interest — though we recommend keeping these as satellite allocations and not letting them be guided by product euphoria. ELSS has seen a dip, likely due to recent taxation changes, and may not witness significant inflows going forward. Hybrids have bounced back as well, especially arbitrage funds, which received Rs11,000 crore this month, indicating they are being seen as a safe space to park funds before further deployment. Overall, the flows suggest that investors are making thoughtful and balanced allocation decisions.”
Dr. Vikas Gupta, CEO & Chief Investment Strategist at OmniScience Capital
“It is good to see that the Indian investors continue to trust equities as an asset class during ups and downs of the markets. This shows the maturity of Indian retail investors and the result of long-term educational efforts of the regulator and the financial market professionals. Equities maintained a INR 24000 crores monthly flow. Flexi-caps attracting the largest inflow is a good sign. However, small caps and midcap funds continue getting larger inflows compared to large caps. Given that the large caps are, typically, higher quality companies and are broadly available at a larger discount to their intrinsic values, it would have been better if investors allocated to them more. Interestingly, many large caps are also growing faster than many overvalued investor & fund manager favourites in the midcaps and small caps. It is good to see a flow of INR 19000 crores in ETFs which is comparable to the active equity flow of INR 24000 crores. Debt mutual funds recovered their liquidity which had dried up due to the advance tax outflows and other cash commitments in March. However, these are more reflective of corporate flows as compared to equities which are more retail or individual investors driven.”
