Flows through systematic investment plans (SIPs) hit an all-time high of Rs 26,632 crore in April, with 83.8 million contributing accounts in April, revealed data from the Association of Mutual Funds in India (Amfi) on Friday. Inflows into debt funds also touched a record high of around Rs 2.2 lakh crore.

“The trend underscores a growing awareness among investors of the importance of staying invested through market cycles and systematically building wealth over time,” said Venkat Nageswar Chalasani, chief executive, Amfi.

He added that while geopolitical developments and border tensions may introduce short-term market volatility, investors are encouraged to stay focused on their long-term financial goals. ” Reacting impulsively to temporary market movements can derail investment strategies,” he said.

However, overall equity flows declined for the sixth consecutive month since October, hitting a 12-month low of Rs 24,269.26 crore. Inflows into small-cap schemes dipped 2.3% month-on-month to Rs 3,999.95 crore, while mid-cap inflows fell 3.6% to Rs 3,313.98 crore. In contrast, large-cap inflows rose to Rs 2,671.46 crore from Rs 2,479 crore in the previous month.

Inflows into sectoral and thematic funds, after falling consecutively in three consecutive months, rose more than very sharply month-on-month to Rs 2,001 crore. Gold ETFs saw a slight outflow of Rs 5.82 crore as people might have booked profits as it touched all-time high, according to Chalasani. 

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Feroze Azeez, joint CEO, Anand Rathi Wealth Limited, said: “AMFI numbers for April 2025 reaffirm the fact that Indian investors are no longer driven by noise and are anchored to the fundamentals. Despite market volatility and a minor 3.2% dip in net inflows, equity AUM has grown 4% month-on-month, and industry AUM has grown by 6%, reaching a record of Rs 69.9 trillion.”

Manish Mehta, national head of sales, marketing & digital business at Kotak Mahindra AMC, said that with market uncertainty, lump sum participation seems to have come down as investors are probably taking a waiting approach to fresh investments. “Volatility is an investor’s friend and continuing to invest through SIP / STP would be the prudent approach at such times,” he said.

Suranjana Borthakur, head of distribution & strategic alliances, Mirae Asset Investment Managers, said: “Sectoral funds witnessed a strong recovery — not driven by new NFOs, but by genuine investor interest, though we recommend keeping these as satellite allocations and not letting them be guided by product euphoria. ELSS has seen a dip, likely due to recent taxation changes, and may not witness significant inflows going forward.”

Borthakur added that hybrids have bounced back as well, especially arbitrage funds, which received Rs 11,000 crore this month, indicating they are being seen as a safe space to park funds before further deployment. Overall, the flows suggest that investors are making thoughtful and balanced allocation decisions.