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Equity flows declined by 3% to Rs.24,269.26 crore in April 2025, down from Rs.25,082.00 crore in March, as concerns over potential U.S. tariffs and a shift in investor preference toward Debt and Hybrid strategies weighed on sentiment.

Debt mutual funds witnessed strong inflows of Rs.2,19,136.27 crore, marking a sharp reversal from the outflows of Rs.2,02,663.04 crore seen in March. A significant portion of the debt allocation was directed toward liquid and liquid-plus strategies, suggesting a preference for short-term parking of funds—possibly in anticipation of better deployment opportunities ahead. In line with this trend, 

Flexicap strategies remained popular, allowing fund managers to dynamically allocate across large-, mid-, and small-cap stocks—particularly where valuations appear more compelling.

Persistent interest in mid- and small-cap segments reflects growing investor confidence in India’s long-term growth trajectory.

While short-term volatility in equity markets is likely, we remain constructive on India’s structural long-term growth story, which continues to demonstrate resilience amid global uncertainties. Investors are advised to maintain allocations to large-cap, flexicap, and hybrid strategies, and consider staggering their investments over the next six months to navigate near-term market fluctuations effectively.

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