India's equity inflows rebound in April as SIPs favour large caps
New Delhi, May 23
Indian equities attracted Rs 73,639 crore in April, far higher than March allocations as SIP inflows largely went to large‑caps, a report said on Saturday.
The report from Vallum Capital said investors rotated toward value plays in PSU and BFSI names and moved away from technology stocks.
Until the broader equity market turns positive on a YTD basis, Indian capital appears focused on discipline rather than aggression, the report said.
April's allocation was Rs 25,931 crore, higher than March, marked by a broad reversal across asset classes with money market and fixed income snapping out of heavy outflow, painting a picture of normalisation after March's quarter-end disruption.
In addition, large‑cap fund inflows moderated to Rs 17,756 crore, down Rs 10,911 crore from the prior month.
However, it remains the dominant destination despite posting -8.0 per cent YTD, the weakest performance across segments.
"Investors are systematically SIPing into underperformance rather than rotating away, a hallmark of India's maturing SIP culture," the report said.
Within equity, dynamic strategies produced the largest monthly swing, moving from Rs 15,242 crore of outflows to Rs 19,755 crore of inflows, marking the largest monthly reversal across all equity sub-categories.
The turnaround was driven largely by arbitrage funds, which accounted for Rs 33,173 crore of the shift as institutional positioning unwound.
In the factor space, Growth was the only positive performer, returning 2.2 per cent in April and 2.9 per cent YTD, alongside rising inflows of Rs 1,022 crore.
Focused Funds, meanwhile, saw the steepest flow decline at Rs 1,008 crore outflows.
Broad BFSI underperformed across themes yet attracted massive net flows, both within the BFSI pack and the wider thematic universe.
Within BFSI, Capital Markets led performance with 18.1 per cent YTD and 7.4 per cent in one month, supported by growing investor interest.
— IANS
Reader Comments
The BFSI theme attracting massive inflows while underperforming seems odd. Are investors just chasing what performed well last year? Need to be careful with momentum plays.
The arbitrage fund swing of Rs 33,173 crore is huge - shows institutional players are actively repositioning. Retail investors should avoid trying to time this volatility. Steady SIPs for the win! 📈
Finally some sanity returning to Indian markets. Investors rotating from overhyped tech to value plays in PSU and BFSI makes sense fundamentally now. Hope this disciplined approach continues through the next correction.
The 8% YTD drop in large-caps while inflows increase is classic contrarian buying. Indian investors are maturing - buying when prices are low instead of chasing highs. My father always said "buy when there's blood on the streets!" 🎯
Interesting that dynamic strategies had the largest swing. But retail investors should be wary - these strategies often have higher costs and complexity. Better to stick with simple index funds or balanced advantage funds for long-term goals. Just my two paise! 💭
Capital Markets theme returning 18.1% YTD while BFSI
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