Summary of the trends in Indian mutual funds for January, February, and March 2025

Business News & Trends
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:bar_chart: Overall Trend (Grand Total)

Month Funds Mobilized (₹ Cr) Redemption (₹ Cr) Net Inflow/Outflow (₹ Cr) Net AUM (₹ Cr)
Jan 2025 12,17,908.50 10,30,357.54 +1,87,550.96 67,25,449.67
Feb 2025 10,27,802.65 9,87,739.29 +40,063.36 64,53,493.85
Mar 2025 13,20,146.03 14,84,580.73 –1,64,434.70 65,74,287.20

:arrow_right: Observation:

  • January had a strong positive net inflow.
  • February saw a significant drop in net inflow.
  • March reversed to a net outflow, indicating reduced investor confidence or profit booking.

:repeat: Key Scheme Categories Trends

:bank: Income/Debt Oriented Schemes

  • Net inflows in January (+₹1.28 lakh Cr) turned to net outflows in February (–₹6,525 Cr) and worsened in March (–₹2.03 lakh Cr).
  • Liquid & Overnight Funds were the major contributors to the outflows in March.

:chart_with_upwards_trend: Equity-Oriented Schemes

  • Maintained steady positive net inflows:
    • Jan: +₹39,688 Cr
    • Feb: +₹29,303 Cr
    • Mar: +₹25,082 Cr
  • Despite market volatility, equity investors seem more committed.

:twisted_rightwards_arrows: Hybrid Schemes

  • Positive flows in Jan (+₹8,768 Cr) and Feb (+₹6,804 Cr) reversed in March with a net outflow of ₹947 Cr, particularly in Arbitrage Funds and Equity Savings Funds.

:new: New Schemes Launched

  • January: 12 schemes, ₹4,544 Cr mobilized
  • February: 29 schemes, ₹4,029 Cr mobilized
  • March: 30 schemes, ₹4,085 Cr mobilized

:arrow_right: Index Funds and ETFs are a growing focus among new launches, reflecting interest in passive investing.

:pushpin: Notable Shifts

  • AUM peaked in January, dipped in February, and slightly recovered in March despite the net outflow — likely due to market gains.
  • Debt schemes volatility indicates sensitive investor behavior to interest rates or short-term market conditions.
  • Equity and passive fund resilience suggests a long-term investment mindset remains intact.

AI Generated

Source: Amfi - Mutual Funds in India | Investment Plans | Tax Saving Funds

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Based on the mutual fund reports for March 2024 and March 2025, here’s a focused summary of Equity Linked Savings Schemes (ELSS) trends:

:bar_chart: ELSS Overview: March 2024 vs. March 2025

Metric March 2024 March 2025 Change
No. of ELSS Schemes 42 (Open-Ended) + 18 (Close-Ended) 43 (Open-Ended) + 15 (Close-Ended) +1 Open-Ended, -3 Closed-Ended
Folios (Open-Ended) 1,61,13,976 1,70,11,131 +8.98 million (~5.6%)
Funds Mobilized ₹3,876.13 Cr ₹2,382.39 Cr ↓ ₹1,493.74 Cr (~38.5%)
Redemptions ₹2,087.07 Cr ₹1,647.02 Cr ↓ ₹440.05 Cr
Net Inflow ₹1,789.06 Cr ₹735.38 Cr ↓ ₹1,053.68 Cr (~59%)
AUM (Net Assets Under Mgmt) ₹2,13,759.85 Cr ₹2,32,245.47 Cr ↑ ₹18,485.62 Cr (~8.6%)
Average AUM ₹2,10,525.36 Cr ₹2,25,225.53 Cr ↑ ₹14,700.17 Cr (~7%)

:mag: Key Insights:

  1. Investor Base Growth: There was a steady rise in ELSS folios, indicating growing investor interest, likely driven by tax-saving motives and equity exposure.
  2. Drop in Net Inflows: Despite the increased investor base, net inflows nearly halved, suggesting:
  • A possible dip in fresh investments.
  • Increased caution or profit booking amid market volatility or regulatory changes.
  1. Healthy AUM Growth: Assets under management rose ~8.6%, potentially supported by market performance or compounding of existing holdings.
  2. Closed-Ended ELSS Schemes: Continued to decline — from 18 to 15 — highlighting a structural shift toward open-ended options due to their flexibility.
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Also recent Income Tax Reforms.

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The drop mentioned was about ELSS funds. With the tax bracket widening, many individuals will no longer fall into the taxable income category, so they won’t have to stress about provisioning for ELSS investments.