If you’ve been keeping an eye on your SIPs and mutual fund portfolio, you might’ve noticed some changes lately. According to the Association of Mutual Funds in India (AMFI), equity mutual fund inflows dropped to ₹25,082 crore in March 2025, down 14% from February’s ₹29,303 crore.
This marks the third straight month of decline, even though the broader stock market recovered in March, with the Sensex and Nifty rising by over 5%.
So, what’s going on behind the scenes?
Let’s break down the latest AMFI news and see what it means for you.
Why did equity mutual fund inflows decline?
The drop in equity mutual fund inflows isn’t a random blip. It’s part of a broader trend:
- In January 2025, inflows were at ₹39,688 crore
- In February, they dropped 26% to ₹29,303 crore
- In March, another 14% dip brought it to ₹25,082 crore
Interestingly, this decline came despite a market rebound in March, suggesting that investors may be locking in profits or waiting for more clarity amid macroeconomic concerns like Trump’s tariff tensions.
What about SIPs?
SIPs, often considered the most consistent and disciplined way to invest, also saw a minor dip.
- SIP inflow in March: ₹25,926 crore
- Down slightly from February’s ₹25,999 crore
- This is the lowest SIP collection in 4 months
That said, the fundamentals of SIP investing remain strong:
| SIP Metrics (March 2025) | Value |
| Monthly Inflow | ₹25,926 crore |
| Number of SIP accounts | 8.11 crore |
| SIP AUM | ₹13,35,188 crore |
| New SIPs registered | 40.18 lakh |
So, while inflows dipped slightly, investors are still showing up, just more cautiously.
How did different mutual fund categories perform?
Investor interest is shifting.
Here’s a look at equity mutual fund category inflows in March 2025:
| Category | Inflow (₹ crore) | Change vs Feb |
| Large Cap | 2,479 | ↓ from 2,866 |
| Mid Cap | 3,438 | ↑ from 3,406 |
| Small Cap | 4,092 | ↑ from 3,722 |
| Multi Cap | 2,752 | ↑ from 2,517 |
| Flexi Cap | 5,615 | ↑ from 5,104 |
| Sectoral/Thematic | 170 | ↓ from 5,711 |
What stands out here?
- Small and midcap funds are trending up, despite market volatility.
- Flexi cap funds led the charts, hinting at a preference for more dynamic and diversified approaches.
- Sectoral funds crashed by 97%, showing investors are pulling away from niche bets.
So, where’s the money going?
Not just equity funds. Here’s what else moved in March:
- Gold ETFs: Outflows of ₹77 crore, despite record gold prices
- Debt Funds: Outflows of ₹2.02 lakh crore due to quarterly advance tax payouts
- Hybrid Funds: Net outflows of ₹946 crore compared to February’s ₹6,803 crore inflow
Interestingly, despite all these outflows, the mutual fund industry’s total AUM actually grew:
| AUM Snapshot (₹ crore) | February 2025 | March 2025 |
| Total Mutual Fund AUM | ₹64.53 lakh cr | ₹65.74 lakh cr |
| Equity AUM | ₹27.4 lakh cr | ₹29.5 lakh cr |
So even as new money coming in slowed, the overall portfolio gained value due to market recovery.
What about new fund launches?
March 2025 saw 30 new mutual fund schemes, raising ₹4,085 crore in total:
- 11 index funds gathered ₹2,049 crore
- 1 gold ETF was launched
- 10 other ETFs and 4 equity-oriented schemes rounded out the list
This shows AMCs are still innovating, and investors are cautiously exploring new opportunities.
Key takeaways for investors
So, what does this mean for you?
- Don’t panic over short-term flows. The decline in equity mutual fund inflows doesn’t mean people are quitting investing, it could simply be strategic reallocation.
- Midcaps and smallcaps are still hot. Investors seem to be comfortable with a bit more risk in search of long-term gains.
- SIPs are holding strong. A slight dip doesn’t change the bigger picture, long-term investing habits remain steady.
- Avoid timing the market. This 14% drop came in a month where stock markets rallied. Proof again that market timing rarely works.
- Flexi and multi cap funds are gaining favour. They offer the right mix of adaptability and diversification, perfect for uncertain times.
Final thoughts
This latest AMFI data is more than just a report card on inflows. It’s a snapshot of investor sentiment in March 2025—nervous, cautious, but still committed.
While headlines might scream “inflows fall 14%”, the real story is about a maturing investor base—one that’s learning to pause, reassess, and pivot rather than panic.
The trend may have slowed, but the movement hasn’t stopped.
