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Quote below on the monthly report release by AMFI by Jean Christophe, Director and Chief Marketing Officer, Sharekhan by BNP Paribas

The mutual AUM in the month of Mar-23 stood at Rs 39.42 lakhs crores a marginal fall from the previous month. The Indian equity indices seemed range bound in the month of Mar-23 with a marginal increase of 1%. Equity Mutual Funds witnessed positive inflows of nearly 20,534 crores which is a jump of nearly 31% from the previous month. Increasing inflows since the beginning of the year with this month being the highest contribution in the past ten months reflects investors’ confidence in the growth of the Indian economy. A major contributor to the positive inflows could be due to the maximum inflows witnessed in the ELSS category which can be attributed to the tax planning of the investors. The uncertain macro environment, higher commodity prices, muted returns, rising bond yields, the slowdown in growth and rising inflation have likely led the investors to choose to redeem their investments in debt funds in favour of other investment avenues. Outflows in the debt category in Mar-23 were nearly 56884 crores with maximum outflows in the liquid and money market categories. Hybrid Funds witnessed outflows of nearly 12372 crores after remaining positive for the past 3 months. Arbitrage funds continued to remain the maximum contributor to the outflows due to the shrinking spreads. The second best performer after equity MFs would be other schemes which include index funds, Gold ETFs, other ETFs, and fund of fund investing overseas that has witnessed exponential growth since the beginning of the year. Index funds were the maximum contributors in this category with inflows of nearly 27, 228 crores which can be attributed to them being low-cost 

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