By Mahendra Patil, Founder and Managing Partner, MP Financial Advisory Services LLP
“The latest AMFI data reveals a strategic rotation in investor preferences amid heightened global volatility. Equity mutual fund inflows moderated marginally to Rs 24,269 crore in April, reflecting a pause after sustained equity appetite. Notably, SIP contributions in April reverted to pre-September 2024 levels, indicating cautious investor sentiment driven by high market valuations, geopolitical uncertainties, and a seasonal tax-cycle reset. Despite this, small-cap and sectoral/thematic funds continued to draw strong inflows, suggesting selective high-conviction positioning. On the debt side, the sharp reversal—with Rs 2.19 lakh crore inflows following steep March outflows—signals a flight to safety and a strategic duration call ahead of expected rate easing. Liquid fund inflows of Rs 1.18 lakh crore further highlight demand for capital preservation. These trends underscore a more tactical and risk-calibrated approach as investors navigate global uncertainties and seek to balance growth with downside protection.”
