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Net inflows into domestic equity-oriented ETFs jumped over 500% month-on-month in March 2025, according to ICRA Analytics. Investors showed a clear shift toward passive investment options amid market volatility. Data from the Association of Mutual Funds in India (AMFI) showed that inflows into domestic equity ETFs rose from ₹1,943.
80 crore in February 2025 to ₹11,808.08 crore in March 2025. In contrast, inflows into thematic funds dropped sharply to ₹170 crore from ₹5,712 crore a month earlier.
Despite global market uncertainties triggered by reciprocal tariffs imposed by the US President, domestic mutual fund investors remained net buyers in equity funds. Inflows into equity mutual funds stood at ₹25,082.01 crore in March 2025.
While this was the lowest in 11 months, it marked the 49th consecutive month of positive equity inflows since March 2021. On a month-on-month basis, equity fund inflows fell by 14% compared to February 2025. However, they were up around 11% year-on-year.
ICRA Analytics noted that despite caution, investors displayed resilience and maturity by continuing disciplined investments through volatility. AMFI data also showed that the mutual fund industry's overall assets under management (AUM) rose 23.11% year-on-year to March 2025.
AUM of equity-oriented schemes grew the fastest at 25.39%, followed by other schemes, including index funds and ETFs, which grew by 22.72%.
Among equity funds, Sectoral/Thematic Funds recorded the highest AUM growth at 53.04% year-on-year. Multi Cap Funds followed with a growth of over 40%.
In the other schemes category, Gold ETFs posted the strongest AUM growth at 88.60%, while Index Funds grew over 30%. In the debt category, Long Duration Funds, Gilt Funds, and Money Market Funds reported AUM growth of more than 50% over the year.
The number of mutual fund folios grew by 31.85% year-on-year by March 2025. Growth was led by other schemes, where folio count jumped 48.
31%, and equity schemes, which rose 33.38%. However, folio count for debt-oriented schemes fell by 3%.
Systematic Investment Plans (SIPs) also continued to expand. Outstanding SIP accounts rose 20% year-on-year to 1005.39 lakh in March 2025.
Contributing SIP accounts grew 27% over the year. SIP contributions increased by 35% year-on-year to ₹25,926 crore, though they dipped slightly by 0.28% over the month.
SIP AUM rose 25% annually and accounted for 20.31% of the overall AUM in March 2025, up from 20.07% a year earlier.
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