March SIP Inflows Smash Records as Equity Funds Surge

Investors turned optimists in March, pumping a whopping ₹40,450.26 crore into active equity mutual funds—the loftiest figure in eight months—per AMFI's latest monthly report. This came after February's more modest ₹25,977.81 crore, reflecting a sharp pivot amid fluctuating markets. SIPs stole the spotlight, clocking an all-time high of ₹32,087 crore, a clear testament to retail investors' disciplined approach despite uncertainties. Yet, the overall industry grappled with ₹2.39 lakh crore in outflows, a reversal from February's ₹94,530 crore inflows, largely due to debt fund exits. Market watchers point to sustained SIP flows, portfolio tweaks at fiscal year-end, and dips from West Asian tensions as key drivers. 'Volatility created prime buying opportunities for patient investors,' they say, spurring equity allocations. Breaking it down, flexi-cap schemes topped the charts with ₹10,054.12 crore (vs. ₹6,924.65 crore in Feb), mid-caps drew ₹6,063.53 crore (up from ₹4,002.99 crore), and small-caps ₹6,263.56 crore (from ₹3,881.06 crore). Large-caps added ₹2,997.84 crore, with sectoral/thematic steady at ₹2,698.82 crore. Debt funds bled ₹2.94 lakh crore, flipping from February's ₹42,106.31 crore inflows, as overnight and liquid categories led the exodus. Hybrids lost ₹16,538.47 crore, arbitrage ₹21,113.70 crore, and gold ETFs dropped to ₹2,266 crore from nearly double. NFOs raised ₹3,985 crore across 24 offerings, edging down from February. As equities shine amid broader caution, this trend signals robust domestic savings channeling into growth-oriented assets, poised for long-term gains.