Comment on AMFI by Kartik Jain, MD & CEO, Shriram AMC
Below the Comment on AMFI by Kartik Jain, MD & CEO, Shriram AMC
Positive Equity Flows Amid Market Correction, While Debt Outflows Driven By Quarter-End Liquidity Activity
March reflects a clear shift in investor behaviour compared to February, with overall industry flows turning negative at Rs.2.4 lakh crore outflows versus Rs.94,000 crore inflows in February, largely led by a sharp reversal in debt fund flows. This indicates a tactical reallocation rather than a sentiment-driven exit.
Debt categories, which saw inflows in February, witnessed significant outflows in March, particularly in liquid and money market funds, suggesting quarter-end treasury movements and profit booking by institutional investors.
In contrast, equity flows remained resilient, with net inflows rising to over Rs.40,000 crore from ~ Rs.26,000 crore in February, led by strong traction in flexi cap, mid cap and small cap funds. In Q4, large cap and small cap category witnessed significantly higher inflows compared to Q3.
Hybrid segments, however, moderated, moving from positive inflows in February to net outflows in March, reflecting a cautious stance amid market volatility. Meanwhile, passive categories such as ETFs and index funds continued to see healthy traction, reinforcing the structural shift towards cost-efficient investing. ETFs (excluding Gold ETFs) witnessed the highest inflows across the mutual fund industry. Even amid a volatile gold environment, Gold ETFs recorded net inflows of Rs.2,265.68 crore, with an AUM of Rs.1,71,468.35 crore.
Overall, the flow behaviour between debt and equity reflects the needs of institutional vs. retail investors, where short-term liquidity adjustments coexist with sustained long-term.
Above views are of the author and not of the website kindly read disclaimer
