Apr-25 Mutual fund AUM finally scales ₹70 Trillion barrier

13 May 2025 , 12:01 PM

DOUBLE BOOST – DEBT INFLOWS PLUS EQUITY ACCRETION

After the year-end outflows in March, the month of April 2025 saw sharp debt fund inflows of ₹2,19,136 Crore. This was supported by accretion in equity values, which resulted in overall AUM growing 6.5% over March to scale ₹70 Trillion for the first time. Equity fund flows stayed subdued at ₹24,269 Crore. Amidst tepid NFOs and record SIP stoppage ratio; the gross SIP inflows were at a record ₹26,632 Crore.  Overall inflows into mutual funds in April 2025 were robust at ₹2,76,827 Crore. 

Even as equity fund inflows were subdued, there was a sharp revival in the inflows into hybrid and passive funds. The revival in hybrid fund flows was led by arbitrage funds; a quasi-debt fund. As investors turned sceptical about active equity funds amidst volatility, there was a surge in demand for passive index ETFs. For April 2025, hybrid fund net inflows were ₹14,453 Crore, while passive fund net inflows were ₹20,229 Crore. NFOs were tepid at ₹350 Crore; but gross SIP flows set a new record, despite elevated SIP stoppage ratio. 

DEBT FUNDS SCRIPT FLOW STORY FOR APRIL 2025

Here is a quick look at monthly flows across fund categories in last 13 months. 

Month	Debt Fund Flows (₹ Crore)	Equity Fund Flows (₹ Crore)	Hybrid Fund Flows (₹ Crore)	Passive Fund Flows (₹ Crore)	Total MF Flows (₹ Crore)
Apr-24	1,89,891	18,917	20,110	11,505	2,39,233
May-24	42,295	34,697	18,456	15,665	1,11,103
Jun-24	(1,07,358)	40,608	9,039	14,602	(43,109)
Jul-24	1,19,588	37,113	17,663	14,778	1,89,141
Aug-24	45,169	38,239	10,233	14,599	1,08,123
Sep-24	(1,13,834)	34,419	5,366	3,254	(71,114)
Oct-24	1,57,402	41,887	17,189	23,428	2,39,907
Nov-24	12,916	35,944	4,443	7,061	60,295
Dec-24	(1,27,153)	41,156	4,703	784	(80,355)
Jan-25	1,28,653	39,688	9,011	10,255	1,87,551
Feb-25	(6,526)	29,303	7,050	10,249	40,063
Mar-25	(2,02,663)	25,082	(705)	14,149	(1,64,435)
Apr-25	2,19,136	24,269	14,248	20,229	2,76,827

Data Source: AMFI (negative figures in brackets)

April 2025 witnessed the best active debt fund inflow for the last one year at ₹2,19,136 Crore. Equity fund inflows were at a 12-month low of ₹24,269 Crore; with inflows below ₹30,000 Crore for the third month in a row. Hybrid funds saw the best inflows since October 2024, led by arbitrage funds. Passive fund inflows also saw the best inflows since October 2024; and was above ₹20,000 Crore for just the second time in last one year.

HOW THE ₹70 TRILLION NET AUM ADDED UP

As of the close of April 2025, mutual funds reported 6.48% sequentially higher AUM at ₹70.00 Trillion. Here is the AUM mix for the last 13 months.

Month	Debt AUM  (₹ Trillion)	Equity AUM  (₹ Trillion)	Alternate AUM  (₹ Trillion)	Total AUM  (₹ Trillion)
Apr-24	14.59	24.74	17.66	57.26
May-24	15.12	25.40	18.13	58.91
Jun-24	14.13	27.68	19.08	61.16
Jul-24	15.44	29.34	19.92	64.97
Aug-24	16.00	30.09	20.35	66.70
Sep-24	14.97	31.10	20.75	67.09
Oct-24	16.64	29.89	20.46	67.26
Nov-24	16.86	30.36	20.60	68.08
Dec-24	15.67	30.58	20.41	66.93
Jan-25	17.06	29.47	20.46	67.25
Feb-25	17.08	27.40	19.79	64.53
Mar-25	15.21	29.45	20.82	65.74
Apr-25	17.57	30.58	21.59	70.00

Data Source AMFI

For April 2025, active debt fund AUM bounced back to ₹17.57 Trillion; the best level in the last one year. Debt fund AUM is up 20.4% yoy. The AUM of equity funds also jumped to ₹30.58 Trillion in April 2025, led by equity value accretion. However, it is still below its September 2024 peak. Equity fund AUM is 23.6% higher yoy. Alternate AUM has improved MOM, thanks to passive funds; and it is 22.3% higher yoy. Here is a look at the AUM shares of various categories of funds as of April 2025.

Month	Active Debt Funds	Active Equity Funds	Hybrid Funds	Passive Funds	Solution Funds	Close-ended Funds
Nov-24	24.76%	44.59%	12.88%	16.60%	0.77%	0.39%
Dec-24	23.42%	45.68%	13.10%	16.61%	0.79%	0.40%
Jan-25	25.37%	43.82%	13.02%	16.64%	0.76%	0.40%
Feb-25	26.47%	42.45%	13.20%	16.71%	0.75%	0.41%
Mar-25	23.13%	44.80%	13.44%	17.45%	0.78%	0.41%
Apr-25	25.10%	43.68%	13.07%	17.02%	0.75%	0.37%

If you take a 5-month perspective (April 2025 over November 2024), active debt funds, hybrid funds, and passive funds have gained AUM share. However, this has been offset by a corresponding fall in AUM share of active equity funds, solution funds and close-ended funds. The fall in AUM of active equity funds can be attributed to SIP folio reduction.

ACTIVE DEBT FUNDS: HAPPY DAYS ARE HERE AGAIN

Debt funds saw net inflows of ₹2,19,136 Crore in April 2025. All debt fund categories at the shorter end of the yield curve saw net inflows. Big drivers of debt fund inflows were Liquid Funds ₹1,18,656 Crore, Money Market Funds 31,507 Crore, Ultra Short Duration Funds 26,734 Crore, Overnight Funds ₹23,900 Crore, Low Duration Funds ₹9,371 Crore, Short Duration Funds ₹4,763 Crore, and Corporate Bond Funds ₹3,458 Crore. Other inflows were marginal. On the redemption side; gilt funds and credit risk funds saw net outflows, but they were rather insignificant in the overall scheme of things.

ACTIVE EQUITY FUNDS: INVESTORS TAKE A FLEXI APPROACH

In April 2025, equity funds saw subdued net inflows of ₹24,269 Crore. Big drivers of inflows into equity funds were Multi-Cap / Flexi-Cap Funds ₹8,093 Crore, Small Cap Funds ₹4,000 Crore, Mid-Cap Funds ₹3,314 Crore, Large Cap funds ₹2,671 Crore, Large & Mid-Cap Funds ₹2,552 Crore, and Sectoral / Thematic Funds ₹2,001 Crore. The attraction for thematic funds appears to be fading. ELSS was the only equity fund category to see net outflows in April.

HYBRID FUNDS AND PASSIVE FUNDS FLATTER ON THE UPSIDE

After marginal outflows in March 2025, hybrid funds saw overall net inflows of ₹14,453 Crore. Hybrid net inflows were dominated by Arbitrage Fund at ₹11,790 Crore, Multi-Asset Allocation Funds at ₹2,106 Crore, and BAFs at ₹881 Crore. Marginal net outflows were seen in conservative hybrid fund, balanced hybrid funds, and equity savings funds.

In the passive category; inflows were dominated by index ETFs ₹19,057 Crore followed by Index Funds at ₹1,555 Crore. Gold fund flows were marginally in the negative. The passive category flows crossed ₹20,000 Crore only for the second time in last one year.

The surge in debt fund inflows and accretion in value of equity funds, helped overall AUM of mutual funds to scale the ₹70 Trillion mark in April 2025. The month also saw revival in flows into hybrid funds and passive funds; which is the good news.