Context:
Net inflows into equity mutual fund schemes declined 14.4% to ₹25,082 crore in March 2025, compared to ₹29,303 crore in February. This marks the third consecutive monthly decline, reflecting growing investor caution amid global economic uncertainties. Equity inflows have remained negative for half of FY 2024-25, highlighting a slowdown in retail investment momentum.
Equity
In finance, equity generally refers to ownership in a company or an asset, often represented by shares or stock. It also represents the value of an asset after deducting all associated debts. In simpler terms, it’s the amount of money an owner would get if they sold an asset and paid off all associated debts.
Sectoral and Thematic Funds Hit Hardest
- The most notable dip was in sectoral and thematic funds, with net inflows falling by 97% to just ₹170 crore in March.
- This is the steepest decline for this category since June 2023, attributed to profit booking and volatility in niche sectors.
SIP Accounts and Contributions Also Decline
- The number of active SIP (Systematic Investment Plan) accounts dropped to 8.11 crore, down from 8.26 crore in February — the third straight month of decline.
- SIP contributions also saw a minor dip, falling to ₹25,926 crore in March from ₹26,000 crore in February.
