Amidst India-Pakistan tensions, mutual fund experts advise investors to remain calm and continue SIPs for rupee cost averaging, avoiding lumpsum investments. They suggest a 5-10% allocation to gold through ETFs or sovereign gold bonds for diversification. Experts also recommend a balanced approach to international funds, around 10-15%, depending on risk appetite, while emphasizing disciplined investment plans for long-term goals.
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Gold ETFs experienced outflows in April, continuing a trend from March. However, the outflow amount decreased. Assets under management increased significantly year-on-year. Experts suggest investors are selectively returning due to inflation and geopolitical concerns. Gold continues to be a hedge amid market volatility. LIC MF Gold ETF was the top performer in April.
Mutual fund AUM surged to ₹69.99 lakh crore in April 2025, boosted by record SIP inflows, strong debt fund performance, and passive fund growth. ETFs saw historic inflows, while equity and hybrid funds sustained their expansion amid bullish markets.
In April, mutual fund SIP stoppage ratio surged, indicating more SIPs were discontinued than new ones registered. Despite this, SIP inflows reached a record high of ₹26,632 crore, driven by a rise in contributing accounts. AMFI emphasizes the importance of long-term investment strategies amid market volatility, highlighting India's resilient economic fundamentals.
Inflows into small and mid cap mutual funds fell 2% and 4% respectively in April, though year-on-year gains remain strong. Sectoral and thematic funds, however, saw a massive 10-fold rise in inflows, reflecting investor rotation amid volatile returns.
Equity mutual fund inflows experienced a slight dip in April, decreasing to Rs 24,269 crore as investors favored debt mutual funds, which saw a significant inflow of Rs 2.19 lakh crore. Flexi-cap funds remained the top choice within equity funds, while sectoral and thematic funds witnessed a notable surge in inflows. Hybrid mutual funds also rebounded strongly, recording substantial inflows.
Edelweiss Mutual Fund has lifted the Rs 2 lakh cap on lumpsum investments in its Recently Listed IPO Fund, citing corrected valuations, a strong IPO pipeline, and robust earnings. The fund has returned 12.9% since inception, outperforming its benchmark.
Motilal Oswal Large & Midcap Fund has demonstrated strong long-term performance, securing the highest five-year CAGR among equity mutual funds. Despite recent underperformance due to stock-specific corrections, the fund's growth-oriented investment style and high active share position it well for long-term investors. Experts recommend a staggered investment approach, emphasizing a 5+ year horizon to fully capitalize on its stock-picking strategy.
Kotak Mutual Fund advises investors to remain invested during the ongoing India-Pakistan conflict. Historical data suggests markets often rebound after initial drawdowns from such events. SIP investors should consider topping up, while lump sum investors should stagger investments. Past surgical strikes and the Kargil War show limited long-term market impact. Macroeconomic factors and corporate earnings ultimately drive market performance.
Around 11 equity mutual funds have experienced a decline exceeding 20% from their 52-week high NAVs, according to an analysis by ETMutualFunds. Motilal Oswal Focused Fund saw the biggest drop at 26.70%. Following closely were Samco Flexi Cap Fund and Samco ELSS Tax Saver Fund, down by 24.67% and 22.42%, respectively.
An analysis of equity mutual funds reveals that around 13 schemes have significantly boosted investors' SIP wealth, multiplying it by over 1.80 times in the past five years. Motilal Oswal Midcap Fund leads with a 2.06x increase, followed by several small-cap funds like Quant Small Cap and Bandhan Small Cap, showcasing impressive returns during the period.
Nifty has surged 10% from its April low, reaching 24,461, prompting experts to advise caution on lumpsum investments due to expected volatility. SIPs remain the preferred route for long-term investors, while staggered allocations via STPs are suggested for those with funds. Auto, international, and tech sector funds have shown double-digit gains since April, driven by strong earnings and global tailwinds.
Around 88% of equity mutual funds delivered negative returns in 2025 so far, with 44 schemes posting double-digit losses. Small-cap and ELSS funds were hit the hardest. Only 33 funds managed gains, led by ICICI Prudential and HDFC schemes. Investors are advised to base decisions on goals and risk appetite.
Around 52% of equity mutual funds surpassed their benchmarks in the last three years, according to an ETMutualFunds analysis. Contra funds demonstrated the highest outperformance, while mid-cap funds showed the lowest. Notably, large funds like Parag Parikh Flexi Cap Fund and Nippon India Small Cap Fund also outperformed their benchmarks during this period.
For glittering Gold and indispensable oil, the fund house expects a correction in the near term, Gold has exhibited tremendous potential and that potential remains for the longer term and also crude oil’s downside is exhausted.
Three Reddit users debated mutual fund investments for buying a Bangalore apartment. Experts advised beginners to consider flexi-cap, hybrid, and gold funds. Emphasis was placed on setting clear goals, understanding risk appetite, and ensuring proper asset allocation across equity, debt, and gold for diversification and stability.
Mutual funds' cash holdings have surged to a 15-year high in March 2025, signaling fund managers' cautious approach amid limited attractive investment opportunities. This elevated cash level mirrors trends seen in 2011 and 2018, preceding Nifty rallies concentrated in large-cap stocks. Investors should temper return expectations and prioritize portfolio quality, asset allocation, and risk management.
