Equity schemes of mutual funds reduced investment in April in the fourth consecutive month, while a record of Rs 26,632 crore was received through the Systematic Investment Plan (SIP). Equity schemes earned a net investment of Rs 24,269 crore in April, which is 3 per cent lower on monthly basis and 41 per cent lower than a high level of Rs 41,156 crore in December 2024.
Despite the increase in the market pace, there was lethargy in the arrival of investment. Experts described the uncertainties on American tariffs as the major factor to affect the notion of investors. The benchmark Nifty increased 3.5 per cent last month, based on the recovery of 6.3 per cent in March.
Akhil Chaturvedi, Executive Director and Chief Business Officer of Motilal Oswal AMC, said, “Pure sales have been flat due to increasing instability due to tariff concerns.” Since December, lethargy in equity investment is mainly due to a decline in lump sum investment while continuous investment in SIPs continues.
Manish Mehta, the national head of the sales, marketing and digital business of Kotak Mahindra AMC, said, “There has been a decrease in part of the market due to uncertainty in the market as investors are probably adopting a policy of waiting for new investment.” During the month, there was an impact on the outright collection even due to the new scheme of any major funds. Only one active equity scheme Kotak Energy Operations Fund collected Rs 171 crore from NFO in April.
SIP investment has increased, but the number of active SIP accounts has declined for the fourth consecutive month. The active SIP accounts decreased from 10.05 crores to 9.14 crores in March. According to the Association of Mutual Funds in India (Amphi), this decline is mainly due to the integration exercise of fund houses. Amphi CEO Venkat Chalasani said that this exercise, which lasted for about four months, is now over.
SIP accounts contributing were decreasing but they saw an increase in April. Now these accounts increased to 8.38 crores as against 8.11 crores of March. Flexicap schemes secured a leading position in the investment chart, earning an investment of over Rs 5,000 crore in the fourth consecutive month. Largecap funds saw the highest increase with an increase of 8 per cent in investment as compared to March. The total investment in midcap and smallcap funds declined to Rs 7,314 crore against the March 7,531 crore in March.
At the industry level, Managing Assets (AUMs) rose by Rs 4.3 lakh crore to a record high level of Rs 70 lakh crore. This increase was mainly supported by investment of Rs 2.2 lakh crore in date schemes, investment of Rs 14,248 crore in hybrid funds and net investment of Rs 20,229 crore in passive schemes.
The bounce in the date in the date was widespread. It included net investment in 12 out of 16 date mutual funds categories. Senior analyst at Morningstar Investment Research India, Nehal Meshram, said, the increase in investment in April also shows the restoration of the normal state and confirms the trust in certain income means, especially among companies that re -invest the cash left after the year’s end of the year.
First Published – May 9, 2025 | 10:57 pm IST