• Source:JND
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Mutual Fund Investment Data In March 2026: Despite a full-scale war that shocked the global energy supply chain for the whole month, the equity mutual funds witnessed a net inflow of Rs 40,450 crore in March-- soaring by 56 per cent on a month-on-month basis, showing a sustained a ressilent faith of domestic investors in the stock market despite volatility and heightened geopolitical tensions.

Furthermore, according to the Association of Mutual Funds in India (AMFI), monthly contributions through Systematic Investment Plans (SIPs) reached a record high of 32,087 crore rupees, compared to 29,845 crore rupees the previous month (February).

This is the highest amount for equity-invested mutual funds since July 2025 (42,702 crore rupees).

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Net Withdrawal At 2.4 Lakh Crore

The mutual fund sector, which had recorded an inflow of Rs 945.3 billion in February, recorded a net outflow of Rs 2.4 trillion, due to significant withdrawals of Rs 2.95 trillion from bond funds during the month.

As a result, total assets under management in the mutual fund sector reached Rs 73.73 trillion at the end of March, compared to Rs 82.03 trillion at the end of February.

Flexi Cap, Mid Cap Top Contributor

Flexicap, midcap and smallcap funds were the main drivers of inflow growth and contributed significantly to the total net inflow.

In the equity segment, flexicap funds led the way with net inflows of over Rs 10,000 crore, followed by smallcap (Rs 6,263 crore) and midcap (Rs 6,063 crore).

While most of the segments recorded positive inflows, there was a minor outflow in dividend yield funds and equity market savings funds (ELSS) due to profit-taking or portfolio restructuring.

Investment In Gold Decline

Reflecting the stability of the gold market, exchange-traded funds (ETFs) saw inflows of Rs 2,266 crore in March. This is significantly lower than the Rs 5,255 crore in February and the Rs 24,040 crore in January.

Although the pace of inflows has slowed down in the past few months, investor interest in gold-backed products remains positive.

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Experts Opinion

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".

"However, this is just a temporary blip, and industry is likely to witness a surge in inflows in the coming months, backed by India's strong macroeconomic fundamentals and valuations of domestic equities looking favourable," Ankur Punj, MD & Business Head, Equirus Wealth.

"The AUM decline is a mark-to-market story driven by a sharp equity market correction during the month, not a confidence story. The net outflow is almost entirely driven by debt fund redemptions, which is a well-established quarter-end phenomenon in March," said Nitin Agrawal, CEO, Mutual Funds, InCred Money.


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