Equity MF inflows double in FY25, AUM jumps 23 pc on SIP surge

Active equity mutual fund (MF) schemes closed the financial year 2024–25 (FY25) with record-breaking inflows — more than twice the amount seen in the previous year — as fund houses capitalised on strong market sentiment, particularly in the first half of the year.

Despite market volatility, investor confidence remained strong, pushing overall assets under management (AUM) up by a remarkable 23 per cent for the year.

While existing equity schemes continued to see robust investor interest during the market rally, new fund launches added significant momentum.

Fresh offerings alone brought in Rs 85,000 crore to the overall equity MF kitty for FY25, according to the reports.

In total, 70 new active equity schemes were rolled out during the year, with most of the action concentrated in the sectoral and thematic categories.

Fund houses also expanded their offerings by adopting passive investment strategies within these thematic spaces, catering to growing investor demand.

A key driver of this growth was the sharp increase in SIP contributions, which reached Rs 2.63 lakh crore during April to February — up over 32 per cent from Rs 1.99 lakh crore in FY24, according to data released by the Association of Mutual Funds in India (AMFI) last week.

In March alone, SIP inflows hit Rs 25,926 crore, contributing to the mutual fund industry’s AUM rising to a historic high of Rs 65.74 lakh crore — a jump from Rs 64.53 lakh crore in February.

Equity AUM alone expanded 7.6 per cent month-on-month, climbing from Rs 27.4 lakh crore to Rs 29.5 lakh crore.

Flexi-cap funds led the way with inflows of Rs 5,615 crore, followed by small-cap funds that drew Rs 4,092 crore — reflecting continued retail interest in diversified and high-growth opportunities.

Midcap funds, too, saw steady inflows of Rs 3,438 crore, while dividend yield funds doubled their traction to Rs 140.5 crore during the month, the AMFI report said on April 11.

While most equity fund categories recorded healthy inflows, large-cap funds continued to face outflows of Rs 2,479 crore, although the pace of withdrawals slowed from February’s Rs 2,866 crore.