SIPs Hit New All-Time High In April 2025! Investors Favour Largecap Schemes Over Midcap, Smallcap

Mutual Fund SIP News: Inflows into equity-oriented mutual fund (MF) schemes continued to lose steam in April 2025 as it fell for the fourth straight month in April 2025, hitting a 12-month low. This is also the 50th month of positive equity inflows, since March 2021. Net inflows fell 3.24 per cent to Rs 24,269.26 crore from Rs 25,082.01 crore inflows seen in the previous month, data from Association of Mutual Funds in India (Amfi) showed. The last time inflows were lower than this was in April 2024, when equity schemes saw net inflows of Rs 18,917.09 crore.

Net assets under management (AUM) as on April 30, 2025 in equity-oriented schemes stood at Rs 30,57,632.89 crore.

Investors Favour Largecap Schemes Over Midcap, Smallcap

Inflows into largecap schemes saw a slight gain on a month-on-month (MoM) basis, while smallcap and midcap schemes saw a decline in inflows. In largecap schemes, inflows rose 7.75 per cent to Rs 2,671.46 crore from Rs 2,479.31 crore in the previous month. Inflows into midcap schemes came in at Rs 3,313.98 crore, a decline of 3.63 per cent from Rs 3,438.87 in March. Similarly, smallcap schemes also saw a slight dip in inflows, sliding to Rs 3,999.95 crore from Rs 4,092.12 crore in the prior month, a decline of 2.25 per cent.

Debt Schemes See Inflows After Two Months Of Outflows

Meanwhile, debt-orient schemes saw a reversal in trend, snapping it two-month outflow streak. Inflows into such schemes for the April month came in at Rs 2,19,136.27 crore as against an outflow of Rs 2,02,663.04 crore in March and Rs 6,525.56 crore in February.

Debt mutual funds had a net AUM of Rs 17,57,215.73 crore, as on April 30, 2025. This represents a rise of 15.55 per cent from previous month’s AUM of Rs 15,20,705.76 crore.

Hybrid schemes saw a net inflow of Rs 14,247.55 crore in April as against an outflow of Rs 946.56 crore. The outflows from Gold Exchange Traded Funds (ETFs) declined sharply to Rs 5.82 crore, from Rs 77.21 crore in the previous month.

MF Industry’s AUM Grows To Nearly Rs 70 Lakh Crore

Overall, the mutual fund industry in India witnessed an inflow of Rs 2,76,827.19 crore for the month of April, as against an outflow of Rs 1,64,434.70 crore seen in March.

The industry's net AUM grew to Rs 69,99,837.94 crore in April, up 6 per cent from Rs 65,74,287.20 crore recorded in March. The average AUM (AAUM) for April stood at Rs 69,49,894.29 crore.

SIPs Hit New All-Time High

Contributions via Systematic Investment Plans (SIPs) surged 3 per cent to a new all-time high of Rs 26,631.88 crore in April, up from Rs 25,926 crore in March. Over 46 lakh new SIPs were registered in the month, and the number of contributing SIP accounts reached 8.38 crore. The total SIP AUM stood at Rs 13.89 lakh crore, as on April 30, 2025.

Amfi attributed the growth in SIP contributions to an increase in the number of contributing accounts, which now totals 8.38 crore.

“This continued growth reflects the rising preference among investors for mutual funds as a disciplined and effective tool for long-term savings,” Amfi said.

Investor Participation Continues To Grow Despite Geopolitical Tensions

Investor participation continued to grow as the total mutual fund folios climbed to over 23.62 crore. Retail mutual fund folios in equity, hybrid, and solution-oriented schemes touched 18.71 crore in April, up from 18.58 crore in March. Retail AUM in these schemes also saw healthy growth as it surged to Rs 40.29 lakh crore compared to Rs 38.83 lakh crore the previous month.

In April, seven new open-ended mutual fund schemes were launched across various categories, which collectively raised Rs 350 crore.

“While geopolitical developments and border tensions may introduce short-term market volatility, investors are encouraged to stay focused on their long-term financial goals. Reacting impulsively to temporary market movements can derail investment strategies. India's economic fundamentals remain resilient, and the long-term growth outlook continues to be strong and promising,” the self-regulatory body added.