The category received net inflows of ₹20,082 crore during the month, supported by mark-to-market gains of around ₹88,000 crore.
However, inflows into index funds declined 43% to ₹4,626 crore in April from ₹8,169 crore in March, indicating some moderation in investor allocations after strong flows in recent months.
Experts said passive investing continues to gain acceptance among retail investors, particularly for large-cap exposure and diversified portfolio construction.
Suranjana Borthakur, Head of Distribution & Strategic Alliances at Mirae Asset Investment Managers (India), said passive investing “continues to gain traction, particularly in the large-cap category.”
Nitin Agrawal, CEO – Mutual Funds at InCred Money, said investors are shifting towards diversified and portfolio-oriented strategies rather than concentrated sectoral bets.
“The shift toward balanced structures is gathering pace,” he said, adding that investors are beginning to think in portfolio terms rather than individual fund themes.
A Balasubramanian, MD & CEO of Aditya Birla Sun Life AMC, said investors preferred diversified allocation strategies amid volatile market conditions.
“This shift indicates a balanced approach towards wealth creation, with investors focusing on asset allocation, stability and long-term goal-based investing,” he said.
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