Inflow in equity mutual funds surges 56% to ₹40,450 cr in March despite market volatility

Equity mutual funds witnessed a net inflow of Rs 40,450 crore in March, marking an increase of 56 per cent from the preceding month, reflecting sustained investor confidence despite market volatility and heightened geopolitical tensions.

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This was the highest monthly net inflow after July 2025, when the equity-oriented mutual funds received a net inflow of Rs 42,702 crore.

“The surge in inflows reflects sustained retail engagement through SIP contributions, year-end portfolio allocations, and investors using recent market corrections as an opportunity to deploy incremental capital into equities” Himanshu Srivastava, Principal Research, Morningstar Investment Research India, said.

Umesh Sharma, CIO-Debt, The Wealth Company Mutual, said the inflow rose sharply following the post-correction phase in equity markets after the onset of the West Asia conflict created more attractive investment opportunities.

Moreover, monthly contributions through SIPs (Systematic Investment Plans) rose to an all-time high of Rs 32,087 crore from Rs 29,845 crore in the preceding month, highlighting the growing preference for disciplined, systematic investing, according to the data released by the Association of Mutual Funds in India (Amfi).

Venkat Chalasani, Chief Executive at AMFI, said the inflow reflects sustained investor confidence in long-term wealth creation through mutual funds. “India’s structural growth story remains strong, and investors continue to align their investments with long-term financial goals’