

In charts: How mutual fund investors responded to the March volatility
Subscribe to enjoy similar stories.In equity markets, an acid test of new investors is how they respond when a crisis hits and the market crumbles. Do they rush for the door? Or, do they affirm their intention to be there for the long term? A mild form of that acid test roiled Indian markets, along with global ones, in March. The benchmark equity index, BSE Sensex, tumbled 11% that month alone.
At the same time, Indian investors did not panic amid the carnage and demonstrated an inclination to use the opportunity of lower valuations to invest more, the latest data on Indian mutual funds shows. In the process, they also burnished the credentials of Indian mutual funds not only as an investment vehicle, but also as a mover of Indian markets.Data on monthly net inflows into Indian mutual funds over the past year shows that equity-oriented schemes remain the bedrock of mutual fund growth, adding about ₹3.5 trillion. They have recorded positive inflows in each of these 12 months.
March, despite market turbulence, saw the second-highest equity inflow of the year at ₹40,450 crore. The only higher month was July 2025 ( ₹42,702 crore), though nearly two-thirds of that came from new scheme launches. March 2026 saw less than 10% of inflows coming from new launches.In contrast, debt-oriented schemes registered net outflows in seven of the 12 months.
March alone saw net outflows of ₹2.9 trillion. However, this is partly due to the fact that corporations tend to invest more in debt funds than individual investors do. The end of the financial year is the time when companies withdraw capital for advance tax payments and year-end balance sheet requirements.The Association of Mutual Funds in India (Amfi), an industry grouping, gives a
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