Active Equity MFs Log Record High Inflows In FY25, SIPs Collect Rs 2.63 Lakh Crore In April-Feb

Active equity mutual funds ended FY25 on a historic high, recording inflows that more than doubled compared to the previous year. The surge was powered by sustained investor optimism and a favourable market climate, particularly in the earlier months of the financial year.

Even in the face of market fluctuations, investor participation remained undeterred. The result was a 23 per cent rise in total assets under management (AUM) for the fiscal year, a clear indicator of growing retail and institutional confidence in equities. While established schemes maintained consistent inflows throughout the year, the launch of several new funds added fresh momentum to the sector, reported IANS.

New Fund Launches And SIP Surge Fuel Growth

Fresh fund offerings played a pivotal role in driving inflows, bringing in Rs 85,000 crore to the equity mutual fund segment for FY25. A total of 70 new active equity schemes were introduced, with a strong tilt toward sectoral and thematic categories. Fund houses also responded to evolving investor preferences by introducing passive investment strategies aligned with these themes.

A significant contributor to the sector’s performance was the sharp rise in Systematic Investment Plan (SIP) inflows. Between April and February, SIP collections soared to Rs 2.63 lakh crore, marking a 32 per cent increase over the Rs 1.99 lakh crore collected in FY24, data from the Association of Mutual Funds in India (AMFI) revealed.

March alone added Rs 25,926 crore, helping push the mutual fund industry’s total AUM to a record Rs 65.74 lakh crore — up from Rs 64.53 lakh crore in the previous month.

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Equity Inflows Rise, But Large-Caps Face Pressure

Equity AUM expanded 7.6 per cent in March, rising from Rs 27.4 lakh crore to Rs 29.5 lakh crore. Flexi-cap funds drew the highest inflows at Rs 5,615 crore, closely followed by small-cap funds with Rs 4,092 crore, reflecting ongoing interest in high-growth and diversified opportunities. Midcap funds attracted Rs 3,438 crore, while dividend yield funds gained traction, with inflows doubling to Rs 140.5 crore.

However, not all segments fared equally. Large-cap funds continued to witness outflows, with Rs 2,479 crore exiting the category. Despite this, the pace of withdrawals eased when compared to February’s outflows of Rs 2,866 crore, according to AMFI data released on April 11.

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