SEBI has proposed expanding intraday borrowing permissions for mutual funds, allowing them to use borrowing for trade settlements, forex obligations, mark-to-market of derivative positions, and other cash management needs beyond just redemption payouts. The regulator's consultation paper, issued on Wednesday, comes after asset managers flagged operational hurdles in complying with the tighter framework rolled out earlier this year. The previous framework was initially scheduled to take effect from April 1, but was later deferred to July 15 following representations from the Association of Mutual Funds in India (AMFI) and asset management companies regarding operational challenges. SEBI acknowledges that restricting borrowing solely to redemption payouts could impair fund management flexibility and potentially hurt scheme returns, with the regulator stating that fund manager's decision making would be impacted due to inability to make buy and sell trades during the same day. Under the proposed framework, mutual funds may borrow funds during the trading day not only for investor redemptions but also for operational requirements such as trade settlements, foreign exchange transactions, derivative positions and other payment obligations. The move is aimed at helping mutual funds handle short-term cash flow mismatches more efficiently without disrupting investment operations or portfolio management activities.
Existing equity schemes attracted record inflows in March and April 2026, with net inflows touching ₹38,503 crore in March and remaining nearly unchanged at ₹38,410 crore in April, according to latest industry data. This represents a significant milestone as the previous peak was recorded in October 2024, when existing schemes saw net inflows of ₹37,840 crore. However, New Fund Offer (NFO) mobilisation fell dramatically to just ₹30 crore in April, accounting for barely 0.1% of total net equity inflows - the lowest share since at least April 2024. This marks a sharp contrast with earlier trends, as between April 2024 and February 2026, there were 10 instances when monthly equity net inflows exceeded ₹30,000 crore, with NFOs typically accounting for more than 20% of inflows in seven of those months. Industry executives attribute this shift to investment opportunities created by market corrections, with Suranjana Borthakur from Mirae Asset Investment Managers noting that market volatility and sustained foreign institutional investor outflows triggered meaningful corrections, making valuations relatively attractive.
HDFC AMC emerged as the standout performer in April 2026, reporting net inflows of ₹69.3 billion and achieving its highest flow share in five months at 14.8%, according to Nuvama report. The company's flow share expanded significantly from previous levels, with the brokerage noting that the sharp improvement in active equity inflows indicates stronger investor traction. Nuvama believes the improving market share in active equity inflows represents one of the biggest positives for the stock, with stronger investor participation and improved distribution trends supporting the recovery during April. The brokerage has maintained a 'Buy' rating on HDFC AMC with a target price of ₹3,170, representing nearly 15% upside potential.
Systematic Investment Plan (SIP) inflows remained resilient in April 2026 despite market volatility, with SIP contributions stable at ₹31,000-₹32,000 crore per month, slightly higher than March levels, according to latest industry data. This represents the fourth instance of monthly inflows remaining above ₹30,000 crore, demonstrating that while investors are adjusting their investment strategies, the overall commitment to systematic investing remains strong. The benchmark Nifty 50 recovered partially with a 7.5% gain in April after declining 11.3% in March, while the Midcap 150 index rose 13.2% and the Smallcap 250 index increased 17.1% during the month. However, SIP stoppage ratio stood at 97.6% with 3 lakh+ SIP stoppages reported, indicating some moderation in participation trends. Despite short-term fluctuations, experts emphasize that SIPs continue to act as a strong counterbalance to foreign outflows and remain central to long-term compounding, with long-term growth remaining strong as SIP contributions have surged from around ₹5,000 crore in 2015 to over ₹31,000 crore today.
Systematic Investment Plans (SIPs) experienced their lowest monthly addition in 12 months during April, with 50.71 lakh new SIPs registered compared to 51.29 lakh discontinuations, according to data from Association of Mutual Funds in India (AMFI). This marked the second consecutive month where SIP closures exceeded fresh registrations, with the stoppage ratio reaching 101% in April. In March, the trend was similar with 52.82 lakh registrations against 53.38 lakh discontinuations. The number of contributing SIP accounts reached 9.65 crore, indicating a large and diverse investor base, though the high discontinuation rate continues to be a concern for the industry. SEBI's emphasis on small SIP growth becomes particularly relevant given these challenging registration trends, with experts noting that SIP data reflects a mixed picture where while stoppages have increased marginally, the tool remains a disciplined wealth creation tool requiring long-term perspective.
Market corrections have created attractive investment opportunities, with valuations much better now than in the last 2-3 years according to Nippon India Mutual Fund's CIO Shailesh Raj Bhan. The markets fell by over 10% in March after staying flat for two years, making current prices more reasonable for long-term investors. Bhan emphasizes that investors can advance SIPs, doubling or even trebling them this year to benefit from expected market recovery in the coming years. The correction comes after a period of flat prices for over a year, with no euphoria before the correction and corporate balance sheets not leveraged, making the current environment more stable than previous market downturns. However, Bhan warns that if there is a sharp correction due to an extreme event like oil prices reaching $125 per barrel, then core investors may start to sell. Market experts note that investors are maintaining 'dry powder' in liquid and arbitrage funds, reflecting a cautious but opportunistic approach toward equities, with flexicap, midcap, and smallcap schemes accounting for the bulk of inflows over the past two months.
