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Record SIPs and Equity Buying as Debt Exits Cut Mutual Fund AUM

Quarter-end cash needs drove redemptions from liquid debt funds, signaling treasury moves rather than fading retail appetite.

Overview

  • AMFI’s March data shows Systematic Investment Plan contributions hit a record ₹32,087 crore and equity funds drew net inflows of ₹40,450 crore.
  • Total mutual fund assets fell to ₹73.73 lakh crore after debt schemes faced about ₹2.95 lakh crore of redemptions linked to fiscal year-end withdrawals.
  • Flexi-cap funds led equity allocations with ₹10,054 crore, while small-cap funds took in about ₹6,264 crore and mid-cap funds added ₹6,063 crore.
  • SIP activity showed high churn with nearly 9.72 crore active accounts and stoppage ratios reported at 76 percent by one outlet and near 99 percent by another.
  • Executives said the AUM drop reflected mark-to-market losses from March’s market slide and routine March treasury pulls, while gold ETF inflows also cooled from January highs.