Apr 16(BNP): India’s equity-oriented mutual funds registered a strong 17.38% year-on-year increase in average assets under management (AUM) in March, driven by consistent and diversified investor inflows across multiple fund categories.

The growth was largely supported by strong participation in flexi-cap, mid-cap, and thematic funds, indicating that investors are increasingly looking beyond large-cap exposure and showing a stronger appetite for diversified equity strategies with higher growth potential.

Market observers note that the steady inflows reflect continued confidence among both retail and institutional investors, even amid periodic market volatility and global uncertainties. The sustained investment trend also highlights the deepening participation of domestic investors in equity markets.

Experts further point out that improved market sentiment, coupled with disciplined monthly inflows through systematic investment plans (SIPs), has played a key role in supporting AUM growth. This trend underscores a shift toward long-term wealth creation rather than short-term trading behaviour.

Overall, the rise in AUM signals strengthening investor engagement in equity mutual funds, with diversified fund categories continuing to attract significant capital inflows.