April 2025 Equity Mutual Fund Inflows Drop Slightly; Flexi-Cap Funds Remain Strong
Equity Mutual Funds witnessed a 3% outflow in Apr-25 at ₹24,269 crore against ₹25,082 crore in the preceding month. While this might have dipped, a large number of investment categories across the board still garnered sharp appetite with flexicap funds leading the wayressive.
Flexi-Cap Funds Top the Inflow Chart
Flexi-cap funds bagged ₹5,541 crore in April, a mere 1% less than ₹5,615 crore that it had garnered in March Flexi-caps gained just under 1% in April, not much but major draw for the flexi cap funds given investors are still bullish on their flexibility and diversification. “Flexi-cap funds are highly preferred by the investors due to their flexibility across market caps decisions,” says Himanshu Srivastava, Associate Director at Morningstar Investment Research India.
Small-Cap and Mid-Cap Funds Experience Modest Declines
Small-cap funds, typically known for their higher risk and potential for larger gains, recorded ₹3,999 crore in inflows, a 2% decrease from March’s ₹4,092 crore. Mid-cap funds also faced a 4% dip, attracting ₹3,313 crore compared to ₹3,438 crore in the previous month. Despite these drops, both categories continue to appeal to investors looking for growth opportunities in the market.
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Large-Cap Funds See Steady Growth
Large-cap funds on the other hand saw a good revenue increase of ₹2,671 crores in April as against ₹2,479 crore taken in march, as per the data. The expansion is a return in faith from investors on the part of famous, blue-chip firms that are seen as safe bets in tumultuous economic times.
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Sectoral and Thematic Funds Surge with 1,076% Growth
Outstanders in April were the sectoral/thematic funds category with a mind-boggling 1,076% increase in inflows for that month. Sectoral funds rose from less than ₹170 crore in March to ₹2000 crore in April. This astound stock of growth could mean that investors are isolating on certain sectors or themes in the market which is in sync their decision making dynamics for emerging trends.
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Declines in Other Fund Categories
Inflows were down in most other categories, as well. Large & Midcap funds witnessed a fall of 6% (₹2,552 crore in April) from the multi-cap funds which also witnessed a fall of 7% (₹2551crosnds).
Value and contra schemes were worst hit declining by 31%, withdrawing sharp₹1,073 crore
Extraordinary though the overall headwinds facing equity mutual fund inflows are, these variations highlight the diversity in investor preferences as they figure out how to bet in a market gone mad. Flexi-cap and sector funds are all ahead as investors strategies drift to diversification plus sector specific exposure.
