Indian equities witnessed a strong rebound in inflows during April, attracting Rs 73,639 crore as investors continued to favour systematic investment plans (SIPs) in large-cap funds despite market volatility, according to a report by Vallum Capital released on Saturday.
The report said equity allocations in April stood at Rs 25,931 crore, significantly higher than in March, as investor sentiment improved across asset classes following quarter-end disruptions. Money market and fixed income categories also recovered from heavy outflows witnessed in the previous month, indicating broader market normalisation.
According to the report, investors increasingly rotated towards value-oriented plays in PSU and banking and financial services (BFSI) stocks, while reducing exposure to technology shares.
“Until the broader equity market turns positive on a year-to-date basis, Indian capital appears focused on discipline rather than aggression,” the report said.
Large-cap funds continued to remain the preferred investment destination, although inflows moderated to Rs 17,756 crore, down by Rs 10,911 crore from the previous month. Despite this, the segment retained its dominance even after posting a negative return of 8 per cent on a year-to-date basis, the weakest among all categories.
The report observed that investors were continuing their SIP investments into underperforming segments instead of shifting allocations elsewhere, describing it as a sign of India’s evolving long-term investment culture.
Within the equity category, dynamic investment strategies recorded the sharpest monthly turnaround, shifting from Rs 15,242 crore in outflows to Rs 19,755 crore in inflows. Arbitrage funds alone accounted for Rs 33,173 crore of this reversal, driven largely by changes in institutional positioning.
In the factor investing segment, Growth emerged as the only positive performer, delivering returns of 2.2 per cent in April and 2.9 per cent year-to-date, while attracting inflows of Rs 1,022 crore.
Focused Funds recorded the steepest decline in investor flows, witnessing outflows of Rs 1,008 crore during the month.
The report further noted that although the broader BFSI segment underperformed across themes, it continued to attract strong investor interest and substantial inflows. Within the sector, capital markets stocks led performance with returns of 18.1 per cent year-to-date and 7.4 per cent in April.
-IANS
