Despite the AUM high, equity inflows fell for the fourth month in a row. Investors turned cautious amid rich valuations and global uncertainty. In contrast, SIP inflows touched new highs, showing strong retail participation.
Liquid, equity funds lead AUM growth
AUM rose 6.5% month-on-month. Liquid funds added ₹1.56 lakh crore, equity funds ₹1.21 lakh crore, income funds ₹80,800 crore, and ETFs ₹33,500 crore.
Equity AUM alone stood at ₹33.5 lakh crore, up 3.8% from March. The Nifty gained 3.5% during the same period.
Equity inflows lose steam
Net equity inflows fell to ₹25,800 crore in April, a 12-month low. Redemptions dropped 1.8% to ₹39,800 crore.
Gross equity sales declined 5% to ₹65,600 crore. Investors likely held back due to stretched valuations or global risks.
SIPs remain strong
SIP inflows reached an all-time high of ₹26,630 crore. They rose 2.7% from March and 30.7% from a year ago.
This shows investors stayed committed to long-term investing despite market swings.
Fund managers shift focus
raised allocations to Private Banks, Oil & Gas, Automobiles, Consumer, and Telecom. They cut exposure to Technology, Capital Goods, NBFCs, Utilities, and Cement.
Private banks saw the biggest increase. Their weight in portfolios rose to 18.9%, the highest in 20 months.
HDFC Bank saw fund additions worth ₹15,700 crore. ICICI Bank got ₹11,820 crore, Axis Bank ₹8,110 crore, and IndusInd Bank ₹3,600 crore.Oil & Gas allocation rose to 6.4%, an eight-month high. Auto moved up to 8%. Technology fell to 8.3%, the third monthly cut in a row.
Mid- and small-cap bets rise
Funds bought 60% of Nifty Midcap 100 and 69% of Nifty Smallcap 100 stocks.
Patanjali Foods, Waaree Energies, NBCC, and Delhivery saw strong inflows.In mid-caps, Tata Technologies, Hindustan Zinc, and IDFC First Bank gained favour. In small-caps, NBCC, Delhivery, Dr Lal Pathlabs, and Godfrey Phillips stood out.
Top AMCs see equity gains
Equity value of the top 20 AMCs rose 3.7% month-on-month and 21.7% year-on-year.
Motilal Oswal MF led with a 6% jump. UTI MF and Nippon India MF gained 4.3% each. SBI MF rose 4.2%, and Axis MF 4%. Banking stocks top value additions
Banks dominated fund additions in April. Siemens, Infosys, Voltas, and Bajaj Finance saw declines.
This shift shows a preference for financials with stable earnings and growth visibility. “Fund managers are rotating towards structural growth themes,” said Motilal Oswal. “Private banks, oil & gas, and mid-cap opportunities lead the shift.”
Outlook stays positive
Equity inflows may be cooling, but record SIPs and strategic fund rotation signal strength.
The ₹70 lakh crore AUM milestone reflects confidence in India’s long-term growth.
