India mutual funds suffer ₹2.9L/cr March outflows amid Iran war
Business
March 2026 was rough for India's mutual fund industry, with nearly ₹2.9 lakh crore pulled out, affected by the war in Iran.
This marks the biggest monthly outflow in recent years and has really shaken investor confidence, especially in debt mutual funds.
For the whole year, net inflows dropped by almost 10% to ₹7.4 trillion.
Debt mutual fund inflows crash 84%
Debt mutual funds took the brunt, with inflows crashing 84% year-over-year and liquid funds alone seeing ₹1.35 lakh crore withdrawn in March.
Overnight and money market funds also saw big outflows.
On a brighter note, hybrid funds actually grew by 30%, showing that some investors are looking for safer or more balanced options during uncertain times.