SIP Inflows Hit Record ₹266.32 Billion In April; Equity Fund Flows Decline For Fourth Month

Systematic Investment Plans reached a record high in April 2025, with monthly contributions climbing to ₹266.32 billion. The number of SIP accounts rose to 83.8 million, with 4.6 million new accounts added in April—higher than the 4 million additions in March. SIP assets under management stood at ₹13.89 trillion, reflecting a 23.4% increase over the previous year. 

However, equity mutual fund inflows fell for the fourth consecutive month, reaching ₹242.69 billion in April—a 3.24% decline from March and the lowest since April 2024. The fall was attributed to global uncertainty, including concerns over potential US tariffs. Despite this, equity mutual funds recorded positive net inflows for the 50th straight month.

Among equity categories, large-cap funds saw a 7.75% increase in inflows to ₹26.71 billion. In contrast, inflows into mid-cap and small-cap funds declined to ₹33.14 billion and ₹40 billion, down 3% and 2.2% respectively. Flexi-cap, multi-cap, and ELSS categories remained stable, while sectoral and thematic funds showed signs of recovery.

Sectoral and thematic funds, which had seen inflows plummet to ₹1.70 billion in March, posted a partial rebound with ₹20 billion in inflows during April. The recovery indicates selective investor interest in cyclical or policy-sensitive themes, even as overall market volatility persisted.

Passive investment avenues gained further ground. Exchange-Traded Funds registered net inflows of ₹190.57 billion in April, up from ₹109.62 billion in March, as investors continued to favour liquidity and price transparency in volatile conditions. Gold ETFs, however, recorded net outflows of ₹5.82 crore, following ₹770 million in outflows in March.

Debt mutual funds showed a varied trend. Corporate bond funds saw net inflows of ₹34.58 billion, reversing the ₹4.14 billion outflow in March. Credit risk funds reported net outflows of ₹3.02 billion, marginally higher than March. Arbitrage funds posted strong net inflows of ₹117.90 billion, a sharp turnaround from ₹28.55 billion in outflows in the previous month. The surge in arbitrage fund inflows reflected short-term capital deployment strategies during heightened market volatility.

Despite the dip in equity inflows, the mutual fund industry’s overall assets under management rose to ₹70 trillion in April from ₹65.74 trillion in March, supported by market gains, SIP momentum, and continued flows into passive and arbitrage strategies.