Mutual funds face sustainability test as market support wavers. Equity mutual fund inflows fell 5% to ₹38,440.2 crore in April despite a 6.5% rise in BSE Sensex, signaling potential caution among household investors. The Gulf conflict and Strait of Hormuz closure are weighing on global and Indian economies, widening India's trade gap during a capital flow drought. Foreign investors continue withdrawing, placing mounting pressure on the rupee. However, systematic investment plan contributions remained resilient at ₹31,115 crore, only slightly below March's record high of ₹32,087 crore. While the mutual fund inflow moderation reveals limits to retail support, the decline remains modest. Steady SIP participation suggests household investors retain confidence despite geopolitical headwinds and macroeconomic challenges.
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