Equity mutual fund inflows in India March 2026 surged 56% month-on-month to an eight-month high of Rs 404.5 billion, reflecting strong retail investor participation despite market volatility triggered by geopolitical tensions in the Middle East. Data released by the Association of Mutual Funds in India (AMFI) highlighted a sharp rise in investments as investors capitalised on market corrections.
Key Highlights
- Equity mutual fund inflows India surged 56% to Rs 404.5 billion amid market volatility.
- SIP investments hit record high as retail investors increase participation during stock market correction.
The growth in equity mutual fund inflows was supported by a steady increase in Systematic Investment Plans (SIPs), with the number of contributing accounts rising to 97.2 million in March from 94.4 million in February. Monthly SIP contributions also reached a record Rs 321 billion, indicating continued confidence among domestic retail investors and long-term investment discipline.
According to reports, the surge in inflows reflects strong retail engagement, financial year-end portfolio allocations, and investors deploying capital during market dips. Experts noted that recent corrections in equity markets have created attractive entry points, encouraging incremental investments.
Segment-wise, large-cap mutual funds witnessed a 42% increase in inflows to Rs 29.98 billion, while mid-cap funds recorded a sharp jump to Rs 60.64 billion. Meanwhile, small-cap mutual funds saw inflows rise 61% to Rs 62.64 billion, indicating strong investor appetite across market capitalisations. Analysts suggest that easing valuation concerns following recent corrections have boosted investor interest in mid- and small-cap segments.
Also Read: Equity MF Inflows Rise 8% to Rs 25,978 Cr in February: AMFI Data
In contrast, foreign institutional sentiment remained weak. Foreign Portfolio Investors sold a record $12.7 billion worth of Indian equities in March, amid concerns over rising crude oil prices and global economic uncertainty linked to geopolitical developments.
Meanwhile, inflows into Gold ETFs declined sharply to Rs 23 billion in March, compared to a record Rs 240.4 billion in January, as investors shifted focus back to equities following the market correction.
Overall, the sharp rise in equity mutual fund inflows in March, coupled with record SIP contributions, underscores the resilience of domestic investors and reinforces confidence in India’s long-term equity growth story despite short-term global uncertainties.
