New Delhi, April 11 (H.S.): Since October of last year, the domestic stock market has been experiencing significant fluctuations, leading to a substantial decline in the confidence of small investors. This is evident from the decrease in investments in equity mutual funds and the number of SIP accounts. In March, 5.1 million SIP accounts were closed due to investors’ disinterest. Similarly, the investment in equity mutual funds also reached its lowest level in 11 months in March.
Data from the Association of Mutual Funds in India (AMFI) shows that there was a decline in overall investment in mutual funds during the month of March. Notably, the inflow into equity mutual funds hit the lowest level in the past 11 months. The investment in equity schemes in March decreased by 14% on a monthly basis, dropping to ₹25,017 crore compared to ₹29,241 crore in February. A decline in inflow in equity mutual funds was also recorded in February. Therefore, there has been a decrease in investment in equity mutual funds for the second consecutive month.
According to AMFI data, the investment in sectoral funds saw a monthly decline of 57% during the month of March. Investors have increased their investment in midcap and smallcap funds. As far as SIPs are concerned, investors have also lost interest in them in March. This is directly reflected in the closure of 5.1 million SIP accounts. The SIP inflow in March also fell to its lowest level in four months. In February, investments through SIPs amounted to ₹25,999 crore, but this figure decreased to ₹25,926 crore in March. Prior to that, in January, the investment stood at ₹26,459 crore.
If we look at the investment figures in equity funds, there has been a continuous decline in investments since October 2024, with one exception. In October 2024, investments in equity funds stood at ₹41,865 crore, which dropped to ₹35,927.30 crore in November. However, in December, there was once again an uptick in investments, bringing the figure back up to ₹41,136 crore. After that, as 2025 began, there was a decline in investment figures. In January 2025, ₹39,706 crore was invested in equity mutual funds, while in February, this figure fell to ₹29,241 crore. In March, the investment figure reached its lowest point in 11 months at ₹25,017 crore.
When it comes to large-cap funds, there has also been a continuous decline in monthly investments this year. In January, ₹3,063.30 crore was invested in large-cap funds, while this fell to ₹2,866 crore in February. In March, this investment figure further decreased to ₹2,479 crore.
In contrast, investments in small-cap funds saw an increase in March compared to February. In February, ₹3,722.50 crore was invested in small-cap funds, which rose to ₹4,092 crore in March. However, in January, investors had put in ₹5,720 crore in small-cap funds.
Hindusthan Samachar / Jun Sarkar
