Equity mutual fund inflows hit 17-month high despite market fall; AUM drops 10% amid correction
Published on 15/04/2026 03:50 PM
Equity mutual fund inflows hit 17-month high despite market fall; AUM drops 10% amid correctionEquity mutual fund inflows hit a 17 month high in March 2026 despite a 10.1 percent drop in total AUM as markets corrected, SIP contributions and retail participation stayed strongBy Srabastee Biswas April 15, 2026, 3:50:32 PM IST (Published)2 Min ReadEquity mutual fund inflows surged to a 17-month high in March 2026, even as the industry’s overall assets under management (AUM) declined sharply amid a steep market correction.
Total AUM of the mutual fund industry fell 10.1% month-on-month (MoM) to ₹73.7 trillion, primarily due to declines across equity, liquid, income, ETF, and balanced fund categories. Equity AUM alone dropped 9.3% MoM to ₹35.1 trillion, marking an 11-month low, as the Nifty slipped 11.3% during the month.
Despite the fall in market indices, investor participation remained robust. Gross equity inflows rose 41.4% MoM to an all-time high of ₹1,024 billion, while redemptions increased 24.6% MoM to ₹539 billion. This led to net inflows climbing to ₹485 billion, up from ₹292 billion in February.
Systematic investment plan (SIP) contributions also remained strong, hitting a record ₹320.9 billion, reflecting a 7.5% MoM and 23.8% year-on-year increase.
Sector-wise, mutual funds increased exposure to Healthcare, Technology, and Utilities, while reducing weights in Private Banks and Automobiles. Healthcare allocation rose to 7.8% (+50 bps MoM), while Technology edged up to 7.3% (+40 bps MoM). In contrast, Private Banks declined to 17.6% (-60 bps MoM), though it remained the largest sector holding.
On the flows front, domestic institutional investors recorded inflows of $15.4 billion, offsetting foreign institutional investor outflows of $14.2 billion during the month.
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Overall, the data highlights resilience in retail participation through SIPs and fresh allocations, even as market volatility weighed on portfolio valuations and dragged down total AUM.Continue ReadingTagsequitymutual fund