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| Name of the scheme | 1-year back | Invest now | Fund category | expense ratio |
|---|---|---|---|---|
| Axis Nifty 50 Index Fund | +32.80% | Invest now | Equity: Big Cap | 0.12% |
| Axis Nifty 100 Index Fund | +38.59% | Invest now | Equity: Big Cap | 0.21% |
| Axis Nifty Next 50 Index Fund | +71.83% | Invest now | Equity: Big Cap | 0.25% |
| Axis Nifty 500 Index Fund | , | Invest now | Equity: Flexi Cap | 0.10% |
| Axis Nifty Midcap 50 Index Fund | +46.03% | Invest now | Equity: Mid Cap | 0.28% |
According to data from the Association of Mutual Funds in India (AMFI), it was a decline of 14% from February, roughly low participation in sectoral NFOs, increase in profit booking, and especially in high-asking large-caps and inherit funds.
Despite the increase in gross membership 4% per month, the redemption increased by 25%, causing a rapid effect in the net equity flow.
Akhil Chaturdeedi, Executive Director and Chief Business Officer, Motil Oswal AMC said, “Most markets increased to more than 55% compared to 54% compared to the previous month,” said AMC said.
He said, “Volatility balanced fund funds could not save even a 30% increase in redemption compared to February,” he said.
Major factors behind the decline in net equity inflow
NFO activity declines
The new Fund Prasad (NFO), which had previously run enough flow in the financial year, saw a recession. Only four equity NFO -Somko Large Cap Fund, Helios Mid Cap Fund, Mahindra Manulif Value Fund, and Motilal Oswal Active Momentum Fund – launched and concluded in March.
Nehal Meshram, senior analyst at Morningstar Investment Research India, said, “This sharp decrease in NFO, especially in sectoral and thematic segments, was greatly impressed.”
Profit booking
Being the end of the financial year, in March, profit booking was seen in categories. Investors saw to lock the profit, especially after a strong market performance in long -term loans and equity funds in the earlier months.
“Booking of profit was a major contributor. The April would be a better indicator to gauge the outflow spirit,” said Chaturvedi. “We believe that the redemption will move moderate.”
Global instability and business tension
Increasing concerns around American tariffs – especially in technology and manufacturing – causes vigilant investor behavior, due to market volatility.
Meshram said, “Fresh global trade struggle, inflation pressure, and the possibility of supply chain disruption have inspired investors to re -achieve risk risk, especially in emerging markets, such as India,” Mashram said.
Increase in redemption in large-caps and thematic funds
Large-cap funds saw an outflow of âı 2,479 crore. Mid-cap inflow fell to 1,017 crores, 86% below February. The small-cap fund inflow, flexible for 2,922 crores, was supported by low redemption (below 15% month-month).
The balanced profit fund (BAFS), usually seen as a pillow during unstable markets, was not spared either.
“BAFS saw a 30% increase in redemption, although the extreme redemption from April to 2024 is less than months,” said Chaturvedi.
End Tax Scheme ELS and Divorce Produce Fund removed the year
Amidst broad moderation, some categories firmly conducted.
ELSS Funds saw an increase of 735 crores in February, above 615 crores, increased demand for tax.
The dividend yield fund also attracted strong flows as investors demanded low risk, income -generating equity exposure.
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