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Investor sentiment saw a strong recovery in April 2025 following a challenging March. Mutual fund assets under management (AUM) grew by 6.47%, reaching ₹69.99 lakh crore, up from ₹65.74 lakh crore in March. This increase was driven by positive flows into debt funds and mark-to-market (MTM) gains in equity funds. This article is based on AMFI’s monthly update on the performance of mutual funds in April 2025.
Market Performance and Fund Flows
The total AUM expansion of ₹4.25 lakh crore was accompanied by net monthly inflows of ₹2.77 lakh crore. Debt funds, which had recorded ₹2.03 lakh crore in outflows in March, saw a sharp rebound with inflows of ₹2.19 lakh crore in April.
Equity-oriented funds benefited from MTM gains, boosting their AUM by 3.81% to ₹30.58 lakh crore. The total increase in equity fund AUM was ₹1.12 lakh crore, with market appreciation driving most of the growth. After five months of bearish trends, the market rebounded, delivering solid returns. Passive funds—including index funds and ETFs—also saw healthy inflows of ₹20,229 crore.
Institutional Investment Trends
Foreign institutional investors (FIIs) turned net buyers in April after three months of selling pressure, while domestic institutional investors (DIIs) continued to provide strong market support. DIIs invested ₹28,228 crore in April, following ₹79,321 crore in January, ₹64,853 crore in February, and ₹37,586 crore in March.
Growing Retail Participation
Investor engagement remained robust, with 17.87 lakh new folios added, of which 11.33 lakh were in equity-oriented funds. Sectoral/Thematic funds led investor preferences, reaching ₹4.70 lakh crore in total investments, while Flexi-cap funds, with ₹4.54 lakh crore in AUM, recorded the highest inflows across mutual fund categories.
Record-Breaking SIP Contributions
Systematic Investment Plan (SIP) inflows hit an all-time high of ₹26,632 crore, reflecting strong retail investor confidence and continued disciplined investing.
References
- AMFI Monthly Update for April 2025
