March 2026 Mutual Fund Data: Record MF Buying Amid Record FPI Selling

The March 2026 AMFI data presents two headline numbers that, read in isolation, look alarming: net AUM fell ₹8.3 lakh crore and total net flows were negative by ₹2.4 lakh crore. Neither number reflects what retail equity investors actually did.

The AUM drop is entirely mark-to-market. Nifty 50 fell 9.37% in March (close to close), its steepest monthly decline since March 2020. The headline net outflow is almost entirely institutional debt redemptions, a pattern that repeats at every financial year-end.

This article presents the complete AMFI March 2026 data: AUM, folio counts, category-wise flows, SIP numbers, and the record MF-vs-FPI equity data from Business Standard and NSDL.

March 2026 at a Glance

Why the Headline Numbers Mislead

Two numbers dominated the news cycle. Both require context before interpretation.

The AUM Drop of ₹8.3 Lakh Crore

This is a mark-to-market change, not a redemption event. Nifty 50 fell 9.37% in March (February 28 close: 25,179 to March 27 close: 22,819.60), the steepest monthly fall since March 2020. When market prices fall, the value of all existing holdings falls with them, regardless of what investors do. The AAUM of ₹79.46 lakh crore is the more representative figure for the month.

The Net Outflow of ₹2.4 Lakh Crore

Debt funds drove nearly the entire figure. Liquid funds alone saw outflows of ₹1,34,988 crore and overnight funds ₹40,228 crore. These are institutional cash-management instruments, routinely redeemed every March for advance tax payments and corporate year-end balance sheet cleanup.

Equity Fund Flows: 61 Months and Counting

Flexi Cap led all categories at ₹10,054 crore. Mid Cap and Small Cap both crossed ₹6,000 crore each, even with benchmark indices declining sharply through the month. Across nine of the ten categories, March inflows ran ahead of February.

ELSS was the only equity category with net outflows in both months. In March, this reflects a FY-end pattern: investors who set up ELSS SIPs in March 2023 for Section 80C completed their three-year lock-in and redeemed. For more on how mutual fund taxation works, see mutual fund taxation in India for FY 2025-26.

SIP Data: March 2026

Contributing SIP accounts recovered to 9.72 crore in March from 9.44 crore in February. AMFI's Monthly Note attributes the February dip to the shorter month, with some end-of-month SIP debits processed in early March. The March figure reflects the normalised base.

A Note on the SIP Stoppage Ratio

The March 2026 SIP stoppage ratio reached approximately 76%. The relevant context:

• March records the highest stoppage ratio every financial year due to FY-end mandate completions.
• Many ELSS SIPs registered in March 2023 for Section 80C completed their three-year tenure.
• Annual SIP mandates set to expire in March lapse naturally at month-end.
• 65.70 lakh new SIPs were registered in the same period, showing the investor base continues to expand.

The monthly contribution figure of ₹32,087 crore is a more direct measure of actual investor commitment than the stoppage count.

The Record That Defines March 2026: MFs vs FPIs

March 2026 set two simultaneous records in Indian equity markets. Foreign Portfolio Investors sold at the highest monthly volume ever recorded. Domestic mutual funds bought at the highest monthly volume ever recorded.

Why FPIs Sold

The trigger was the escalation of conflict in West Asia. Key factors driving the sell-off:

• Crude oil neared $120 per barrel, raising India's import bill risk significantly.
• The rupee weakened past ₹95 per USD, adding currency pressure.
• Global risk-off sentiment moved institutional capital toward US Treasuries.
• FPIs were net sellers on every single trading day through March.

The selling was broad-based across sectors. Financial services, IT, FMCG, auto, and telecom all saw outflows. Capital goods was a notable exception, recording net FPI inflows. For context on FPI behaviour leading into this episode, see the article on FPI outflows in early March 2026.

Why MF Buying Hit a Record

Two factors drove domestic buying to a monthly record. SIP flows continued at their scheduled monthly pace regardless of market conditions. Separately, lump-sum investments picked up toward month-end as investors deployed cash at lower valuations, per Motilal Oswal Asset Management. MF net equity deployment for full FY26 crossed ₹5 lakh crore, surpassing FY25's record of ₹4.7 lakh crore.

Passive Fund Flows: March 2026

Passive instruments saw accelerated inflows during the correction, with a sharp rotation within the category.

Non-gold ETF inflows jumped from ₹4,487 crore in February to ₹19,802 crore in March, a 4.4x increase. Gold ETF inflows moved in the opposite direction, falling from ₹5,255 crore to ₹2,266 crore. Total passive inflows of ₹30,768 crore in March were 2.2x the February level of ₹13,879 crore. For context on the longer passive trend, see the article on passive fund flows in India 2025.

What the March Data Shows

Key Takeaways

• Net MF AUM fell ₹8.3 lakh crore in March 2026, entirely due to the Nifty 50's 9.37% close-to-close decline. It reflects market prices, not investor redemptions.
• Equity mutual funds recorded net inflows of ₹40,450 crore, marking the 61st consecutive positive month dating back to March 2021.
• SIP contributions reached ₹32,087 crore in March, up 7.5% month-on-month. SIP AUM stands at ₹15.10 lakh crore, equal to 20.5% of total industry AUM.
• Domestic MFs made a record monthly equity purchase of approximately ₹1.05 lakh crore (provisional), partially offsetting FPI selling of ₹1,17,775 crore, itself a record per NSDL.
• MF net equity deployment for full FY26 crossed ₹5 lakh crore, surpassing FY25's record of ₹4.7 lakh crore.
• Passive fund inflows accelerated sharply: non-gold ETF inflows jumped 4.4x month-on-month to ₹19,802 crore, with total passive net inflows at ₹30,768 crore versus ₹13,879 crore in February.

FAQs

1. Why did mutual fund AUM fall so sharply in March 2026?

The net AUM dropped from ₹82.03 lakh crore to ₹73.73 lakh crore because the Nifty 50 fell 9.37% during the month on a close-to-close basis (February 28 close: 25,179; March 27 last trading day close: 22,819.60), the steepest monthly fall since March 2020. AUM reflects the current market value of all holdings, so when prices fall, AUM falls with them even if no investor redeems. The AAUM of ₹79.46 lakh crore offers a more representative picture of the month.

2. What were SIP inflows in March 2026?

SIP contributions for March 2026 totalled ₹32,087 crore, up from ₹29,845 crore in February, a 7.5% increase. A total of 9.72 crore SIP accounts were contributing as of March 31, 2026, recovering from 9.44 crore in February, which AMFI attributed to the shorter month.

3. Did equity mutual fund inflows stay positive in March despite the market fall?

Yes. Net equity inflows were ₹40,450 crore in March 2026, marking 61 consecutive months of positive equity inflows since March 2021. Flexi Cap, Small Cap, and Mid Cap were the top three categories by net inflow.

4. How much did FPIs sell in March 2026?

Foreign Portfolio Investors sold Indian equities worth ₹1,17,775 crore in March 2026, per NSDL data, surpassing the previous record of ₹94,017 crore set in October 2024. FPIs were net sellers on every trading day of the month. This followed a net buy of ₹22,615 crore in February, the highest monthly FPI inflow in 17 months.

5. What does the SIP stoppage ratio of 76% in March 2026 indicate?

The SIP stoppage ratio measures discontinued or tenure-completed SIPs against new registrations. March records the highest stoppage ratio of every financial year due to FY-end mandate completions and ELSS SIPs reaching their three-year tenure. The contribution figure of ₹32,087 crore, alongside 65.70 lakh new registrations in the same period, is a more direct indicator of investor commitment. Please consult a SEBI-registered investment adviser to review your own SIP plan.

6. What does the record MF equity buying in March 2026 mean for investors?

Domestic mutual funds purchased approximately ₹1.05 lakh crore of equities in March, a monthly record per provisional data from Business Standard. This partially offset record FPI outflows in the same month, reflecting how domestic institutional capacity has grown over recent years. The figures are provisional and subject to revision as exchange data is confirmed. Past patterns of domestic buying during corrections are not indicative of future market outcomes.

Disclaimer: This article is for general information and educational purposes only. It does not constitute investment advice, a recommendation, or an offer to buy or sell any securities or financial instruments. All data is sourced from the AMFI Monthly Report March 2026 and February 2026 (official PDFs), the AMFI Monthly Note February 2026, NSDL, and is based on publicly available information subject to revision. MF equity buying figures are provisional as of March 30, 2026. Past market behaviour and flow patterns are not indicative of future outcomes. Investors should not make any investment decision based solely on this article. Please consult a SEBI-registered investment adviser or qualified financial professional before making any investment decision. Mutual fund investments are subject to market risks. Please read all scheme-related documents carefully before investing.