Mutual Funds

Information Technology Leads FPI Sell-Off as Sector Rotation Intensifies – Information Technology saw the steepest selling of ₹13,828 Cr in the first half of April, cementing its position as the worst-hit sector of 2025 so far. Financial Services continued its weak streak from March, with outflows of ₹4,501 Cr. Other sectors that witnessed significant unwinding included Capital Goods, Metals & Mining, Oil & Gas, Automobile & Auto Components, Construction and Healthcare, reflecting a broader shift away from cyclical and rate-sensitive segments.

Telecom Leads FPI Buys Amid Defensive Tilt – Telecommunication drew the highest FPI inflows at ₹2,137 Cr, signaling strong interest in digital infrastructure. Modest buying was seen in FMCG (₹587 Cr) and Media & Entertainment (₹103 Cr), while Power and Diversified sectors saw limited participation.

FPIs Turn Net Sellers in Both Equity and Debt in April’s First Half – A renewed surge in equity buying has been observed in recent sessions, indicating rising optimism for a potential rebound in the latter half of April. FPIs turned net sellers across both equity and debt segments in the first half of April, offloading ₹33,927 Cr from equities and ₹14,808 Cr from the debt market. This marks a sharp increase from March, where equity outflows were limited to ₹3,973 Cr due to late-month buying.

FPI AUC Slips Marginally in April Amid Equity Outflows – In the first half of April 2025, the total Assets Under Custody (AUC) of Foreign Portfolio Investors dipped slightly to ₹73.11 Lakh Cr from ₹73.76 Lakh Cr in March. The decline was primarily led by a reduction in equity holdings.

For a comprehensive understanding and more insights, please go through our detailed report.

Equity Mutual Funds Play Safe with ₹2 Lakh Cr Cash Buffer: Amid heightened global tensions and uncertainty, India’s equity mutual funds held over ₹2 Lakh Crore in cash as of March 2025 — among the highest levels on record. Despite a rebound in the latter half of the month, fund managers remained cautious, curbing fresh equity investments in a volatile environment.

Caution Creeps In: AMCs Raise Cash Buffers, Cut Equity Bets: The average cash holding ratio among the top 20 AMCs rose to 5.59% in March, up from 5.43% in February, reflecting a cautious stance amid market volatility. This caution is evident in mutual fund’s lowest monthly net equity investments of just ₹13,459 crore in March 2025 since January 2024, a sharp dip from previous months.

Motilal Oswal Midcap Fund and SBI Contra Fund have cash holding ratios exceeding 24%, among the highest in active equity schemes. Parag Parikh Flexi Cap Fund and SBI Small Cap Fund maintain over 21% in cash.

Contra/Value Funds and Flexi Cap Funds have the largest overall cash piles — ₹19,564 Cr and ₹45,115 Cr respectively. Midcap and Smallcap categories, still hold ₹24,016 Cr and ₹25,803 Cr in cash, hinting that fund managers are waiting for better entry points.

PPFAS MF leads with the highest cash holding ratio of 21.86%, driven by its cautious flexi-cap strategy. Motilal Oswal MF and Quant MF follow with 14.83% and 10.30%, respectively, as they pare equity bets amid volatile conditions. Large players like SBI MF, HDFC MF, and ICICI Pru MF lead in absolute cash holdings — SBI MF alone holds over ₹38,000 Cr in cash.

For a comprehensive understanding and more insights, please go through our detailed report.

Equity MFs Surge on Market Momentum: Equity mutual funds saw a robust 7.5% jump in Net AUM, rising to ₹29.45 Lakh Cr in March. This sharp uptick came on the back of broad-based market gains in the second half of the month.

Fund Managers Exit Key Stocks Amid Strategic Realignment: Some equity mutual funds in March fully exited major holdings including IndusInd Bank, Aavas Financiers, ITC Hotels, Eternal, BSE, Tech Mahindra, ITC, Dabur India, Mphasis, KEI Industries, HCL Tech, NTPC Green, Info Edge, Vishal Mega Mart and Hyundai Motors. This broad-based portfolio exit reflects a strategic shift as fund managers realign positions to tap into emerging opportunities and evolving market trends.

Fresh Bets: Equity MFs Build Positions in Key Growth Stocks: Some equity mutual funds are actively ramping up fresh positions in March across a mix of financials, metals and consumer facing stocks. Top additions include Kotak Mahindra Bank, Bajaj Finserv, Interglobe Aviation, Manappuram Finance, Muthoot Finance, SRF, JSW Steel, Avenue Supermarts, Coforge, Vedanta and PB Fintech—highlighting renewed confidence in select growth and value-driven opportunities.

MFs Buy Into Bharat Forge & Persistent; Trim IndusInd & Dixon in Mid-Cap Realignment: Equity mutual funds poured fresh investments into Bharat Forge, Persistent Systems, Hitachi Energy, Max Financial Services, PB Fintech, Coforge and ICICI Lombard General Insurance, reflecting strong confidence in these mid-cap names. Meanwhile, some funds trimmed holdings in IndusInd Bank, Dixon Technologies and SBI Cards, signaling a strategic portfolio reshuffle.

MFs Load Up on TBO Tek & JB Chem; Exit MCX & Karur Vysya in Strategic Small-Cap Shift: Equity mutual funds aggressively bought into TBO Tek, Sundaram Fasteners, JB Chemicals & Pharma, Navin Fluorine, Crompton Greaves Consumer Electricals and Aster DM Healthcare, signaling strong conviction in these small-cap names. On the other hand, notable sell offs were seen in Karur Vysya Bank, Amber Enterprises, MCX and PG Electroplast.

For a comprehensive understanding and more insights, please go through our detailed report.

Mutual Fund industry’s average AUM dropped 1.30% MoM to ₹66.70 lakh Cr in March amid ₹1.64 lakh Cr outflows and broad mark-to-market losses.

Equity funds logged ₹25,080 Cr inflows in March, marking the 49th straight month, but down 14% to an 11-month low.

Debt AUM fell 4.41% in March with ₹2.03 lakh Cr pulled out due to year-end corporate needs and global uncertainty.

SIP inflows dropped for the third straight month to ₹25,926 Cr — a 4-month low amid market volatility.

In FY 2025, Equity-oriented schemes’ net inflows surged 127%; Passive fund inflows more than doubled to ₹1.43 lakh Cr., and inflows in Sectoral/Thematic category topped all MF segments, fueled by a wave of NFOs.

For more details read through our comprehensive Mutual Fund Flow Report for March, 2025.

Sector Shuffle: FPI Flows in March & YTD 2025
Big Bets on Financials & Telecom in March – FPIs invested ₹14,274 Cr in Financial Services, making it the top-performing sector in March. Telecommunication followed with ₹3,073 Cr and Metals & Mining drew ₹1,901 Cr. Realty, Chemicals, Media, and Healthcare also saw smaller inflows.

Tech & FMCG Face the Heat – Information Technology saw the highest selling pressure in March with outflows of ₹8,451 Cr, while FMCG followed with ₹5,593 Cr in withdrawals. Other sectors like Oil & Gas, Consumer Services, and Auto Components also witnessed sizable exits.

YTD: FMCG & Financials See Maximum Pullout – From January to March 2025, FPIs pulled out ₹17,925 Cr from FMCG and ₹17,662 Cr from Financial Services. Consumer Services, IT, and Auto Components were also hit by consistent selling.

Selective Buying Shows Long-Term Conviction – Despite net outflows, FPIs showed focused buying in select sectors. Telecommunication led with ₹11,215 Cr YTD inflow, followed by interest in Chemicals, Media & Entertainment, and Textiles—highlighting confidence in India’s domestic growth stories.

For a comprehensive understanding and more insights, please go through our detailed report.

Mutual Fund Industry Average AUM Slips 1.73% in Q4, But FY25 Ends with a Roaring 24.56% Rise!

Mid & Small Cap Jitters Drag MFs Average AUM in Q4: The Average AUM of the mutual fund industry declined by 1.73% to ₹67.43 Lakh Cr in Jan–Mar 2025, pressured by sharp corrections in midcap and smallcap segments. However, FY25 ended on a high with a robust 24.56% growth, powered by record SIP inflows and a flurry of New Fund Offers (NFOs) that sustained strong investor momentum.

Motilal Oswal Tops Average AUM Growth Chart: Despite equity market corrections, Motilal Oswal Mutual Fund recorded the highest absolute growth in Average AUM for the Jan–Mar 2025 quarter, followed closely by PPFAS and ICICI Mutual Fund. Backed by strong inflows, their performance underlines the intense competition and evolving momentum driving the mutual fund space.

MF Rankings Stay Rock Solid—Tata Breaks Into Top 10: The mutual fund industry continues to show impressive stability, with the top 3 and top 8 players holding their ranks steady for 15 straight quarters. Tata Mutual Fund made a notable entry into the top 10, overtaking DSP and Mirae. Meanwhile, Mirae Mutual Fund slipped out of the top ten in terms of Average AUM, marking a shift in the competitive dynamics.

SBI MF Average AUM Holds Strong Above ₹10 Lakh Cr Mark : SBI Mutual Fund achieved a historic high of ₹11.13 Lakh Cr in AAUM during the Oct–Dec 2024 quarter. While the Jan–Mar 2025 quarter saw a slight dip to ₹10.72 Lakh Cr, it remained above ₹10 Lakh Cr. Retaining its top position for the 21st consecutive quarter, SBI MF continues to lead with unwavering investor trust.

Rising Stars in Mutual Funds: Tata, Invesco, PPFAS, Motilal Oswal, Bajaj Finserv, Bank of India and Old Bridge Mutual Fund have climbed the ranks, marking strong progress over previous quarters.

Top Gainers by Percentage: New-Age AMCs Shine – In Jan–Mar 2025, Zerodha, Trust, Old Bridge, Helios, Bajaj Finserv, WhiteOak Capital, Motilal Oswal, and PPFAS Mutual Funds delivered standout percentage growth in Average AUM, reflecting their accelerating momentum and rising investor traction across recent quarters.

19 AMCs Defy the Trend with Positive AUM Growth: Despite the overall dip in mutual fund Average AUM and corrections in equity schemes, 19 asset management companies bucked the trend and recorded positive growth in their average AUM during the Jan–Mar 2025 quarter.

For a comprehensive understanding and more insights, please go through our detailed report.

Historic FPI Equity Sell-Off at ₹142,616 Cr; Shift to Debt at ₹34,791 Cr
FPIs offloaded a historic ₹142,616 Cr from equities in just 2.5 months, including ₹30,015 Cr in March’s first half alone, while shifting focus to debt with ₹34,791 Cr investment. Counteracting this, DIIs infused ₹177,895 Cr , supported strongly by Mutual Funds’ bullish bets (₹122,373 Cr YTD) , stabilizing markets amid intense volatility.

FPIs Dump IT, FMCG & Financials; Bet on Telecom & Metals
FPIs initiated heavy sell-offs in IT (₹6,934 Cr), FMCG (₹5,106 Cr), Auto and Financial Services in early March. For CY25, the Financial Services sector faced the largest selling (₹35,251 Cr). Conversely, FPIs showed optimism in Telecom, Metals, Chemicals, Textiles and Media , marking a strategic shift amid volatility.

For a comprehensive understanding and more insights, please go through our detailed report.

Market Corrections Shake Equity MFs: Fresh Picks & Strategic Selloffs

Equity Mutual Funds Face Early 2025 Jitters: Equity mutual funds stumbled at the beginning of 2025, witnessing a 10.39% drop in Net AUM to ₹27.40 Lakh Cr in just two months. The downturn was triggered by a sharp correction in Mid Cap and Small Cap stocks, shaking investor confidence.

Equity MFs Go Bold: Hexaware IPO Bet & High-Conviction Picks: Doubling down on fresh opportunities, 42 equity mutual fund schemes grabbed a 6.3% stake in the Hexaware Technologies IPO, signaling strong confidence in new-age investments. MFs are ramping up positions in high-potential stocks, favoring Kotak Mahindra Bank, SBI Cards & Payment Services, Eicher Motors, UPL, Marico, HDFC AMC, Avenue Supermarts, Maruti Suzuki, M&M and IndusInd Bank. Adding to their aggressive stance, they also backed the IPOs of Ajax Engineering and Quality Power Electrical Equipments.

Equity Schemes Exit Key Positions in Major Companies: Equity mutual funds are reworking their portfolios, fully exiting key positions in NTPC Green Energy, Swiggy, Siemens, REC, Trent, Bharat Electronics, HPCL, Voltas, Bharti Hexacom, Titan, HCL Tech, Grasim and Hindustan Unilever. This signals a strategic shift as funds reposition themselves for new opportunities.

Equity Mutual Funds Accumulate in Market Leaders, Trim Positions in Infosys & SBI: Equity mutual funds actively accumulated top-tier stocks, betting big on Coforge, Max Healthcare Institute, Power Grid, Ultratech Cement, Zomato, HDFC Bank, L&T, Kotak Mahindra Bank, M&M, Axis Bank, Maruti Suzuki, TCS and Reliance, showcasing strong confidence in these market giants. Meanwhile, Infosys, InterGlobe Aviation, SBI, ICICI Bank, Bajaj Finance and Trent saw notable selloffs, indicating a strategic shift in fund allocations.

For a comprehensive understanding and more insights, please go through our detailed report.

The Mutual Fund industry’s average AUM dipped by 0.68% to ₹67.58 Lakh Cr in February.

Equity-oriented schemes extended their positive streak, though net inflows dropped 26%.

Sectoral/Thematic funds continued to dominate inflows, attracting the highest investments.

SIP inflows dipped 1.52% to ₹25,999 Cr.

Index Funds and Other ETFs maintained steady inflows, reflecting investors’ preference for passive strategies.

The average AUM of debt funds rose 3.21% in February, despite an outflow of ₹6.56K Cr.

Liquid funds recorded the highest inflows of ₹4.98K Cr.

For an in-depth exploration, read through our comprehensive Mutual Fund Flow Report for February, 2024.

Financial Services: The Biggest Casualty – FPIs aggressively sold ₹6,991 Cr in February, making it the most offloaded sector. The YTD outflows surged to ₹31,940 Cr, reflecting deep concerns over banking and financial stability.

FPI Sell-Off Hits FMCG, Auto, Capital Goods, Construction & Power – Foreign investors continued their selling spree across major sectors. FMCG faced ₹6,904 Cr outflows in February, totaling ₹12,332 Cr YTD, while Capital Goods lost ₹4,464 Cr, with YTD exits at ₹10,161 Cr.

FPIs Bet Big on Telecom & Chemicals – Foreign investors remained bullish on Telecommunication, investing ₹7,998 Cr in February, bringing YTD inflows to ₹8,142 Cr, making it the top sector of choice. Chemicals also attracted steady interest, with ₹429 Cr inflows in February, pushing total YTD investments to ₹784 Cr.

2025 Off to a Rough Start – With February’s outflows, FPIs have now pulled out a staggering ₹1,12,601 Cr from Indian equities in the 2025 calendar year, underscoring their cautious stance amid global uncertainties.

For a comprehensive understanding and more insights, please go through our detailed report.