Mumbai, April 17: A recent report reveals that investments in equity funds surged to ₹46,501 crore in March, marking an increase of approximately 11% compared to ₹41,934 crore in February.
According to Valm Capital, there was a significant shift in net asset flows during March, as investors moved funds from money market and fixed income funds into equities.
The report indicates that a robust recovery in the Indian stock market attracted investments totaling ₹59,629 crore. Over the month, small-cap stocks rose by 8.1%, mid-cap stocks by 6.9%, and large-cap stocks by 4.8%. However, returns across all categories remain negative since the beginning of the year.
In contrast, money market funds experienced a dramatic reversal. After an inflow of ₹42,800 crore in February, March saw an outflow of -₹1,94,775 crore. Similarly, fixed income funds faced an increased outflow of -₹76,354 crore, up from -₹16,919 crore in February. This trend suggests that investors are cautious about interest rates or are withdrawing their funds.
While investments in commodity funds remained positive, the pace of growth has slowed, indicating a decline in investment in precious metals like gold and silver.
Overall, net asset flow shifted from ₹73,589 crore in February to -₹2,20,797 crore in March, primarily due to substantial withdrawals from money market funds.
The report also highlights that the global weakness of the dollar and a shift in investment trends from the U.S. are significant factors. Thematic ETFs focusing on semiconductors and AI infrastructure are performing exceptionally well.
In 2026, the manufacturing, infrastructure, and defense sectors have emerged as the top choices for investors in India, contrasting with previous preferences for PSU and consumption sectors.
Furthermore, the report notes that investors are gravitating towards safer options. In March, large-cap funds attracted investments of ₹28,558 crore, an increase of ₹19,242 crore from February. Continuous investments were also observed in flexi-cap and mid-cap funds. Meanwhile, arbitrage funds saw a withdrawal of ₹22,182 crore, and dynamic strategy funds experienced capital losses.
My name is Narendra Jijhontiya. I am an experienced content writer with several years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including TECHNOLOGY, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.
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