March Equity mutual – Equity mutual funds saw good participation in March, with net inflows into such funds rising 56% month-on-month to Rs 40,450 crore, the highest since July 2025. (Source: File) Systematic investment plans (SIPs) in mutual funds were closed in March, far more than were registered by investors.

The trend comes as the Middle East crisis has shaken the markets, leaving retail participants nervous. However, despite the selloff, SIP inflows hit a record high, indicating some resilience in mutual fund participation, even as volatility took a toll on sentiment.

This divergence suggests that weaker investors exited their SIP commitments, while participants with more conviction increased contributions, seeing the market recovery as an investment opportunity amid war-related fears, fund managers said. According to data from the Association of Mutual Funds in India, around 52.

82 lakh new SIPs were registered in March, while around 53. 38 lakh SIPs were closed.

This increased the SIP stoppage ratio, calculated by dividing the number of SIPs stopped, to 101. While the number of SIPs closed was broadly within the range seen in the last three months, new SIPs registered were lagging behind the three-month average of about 66. 76 lakh, indicating nervousness among retail investors.