In March 2025, the mutual fund industry witnessed a slight uptick in the number of new schemes launched compared to February, rising from 29 to 30 a modest increase of 3.45%. Total funds mobilized also edged up by 1.39%, from ₹4,029 crores to ₹4,085 crores. While these headline figures suggest stability, a deeper analysis reveals significant shifts in investor preferences and fund house strategies across different scheme categories.
Income/Debt Oriented Schemes: Steady Launches, Surging Funds
The number of new Income/Debt Oriented Schemes remained constant at two launches in both February and March. However, the funds mobilized in this category saw a dramatic rise of 162.9%, jumping from ₹353 crores to ₹928 crores. This substantial increase, despite no change in the number of schemes, points to a growing investor appetite for debt instruments, possibly driven by a preference for lower-risk options in the current market environment.
- February: 1 open-end (₹281 crores), 1 close-end (₹72 crores)
- March: 2 open-end (₹928 crores), 0 close-end
- Funds Mobilized Increase: ₹575 crores (162.9%)
Growth/Equity Oriented Schemes: A Sharp Decline
In stark contrast, Growth/Equity Oriented Schemes experienced a significant downturn. The number of new equity schemes launched halved from eight in February to four in March, a decrease of 50%. Funds mobilized in this category plummeted by 81.7%, dropping from ₹2,495 crores to just ₹457 crores. This sharp decline may reflect investor caution towards equity markets, potentially due to volatility or shifting sentiments.
- February: 8 open-end (₹2,495 crores), 0 close-end
- March: 4 open-end (₹457 crores), 0 close-end
- Schemes Decrease: -4 (-50%)
- Funds Mobilized Decrease: -₹2,038 crores (-81.7%)
Hybrid Schemes: Growth in Both Schemes and Funds
Hybrid Schemes, which blend equity and debt, showed positive growth. The number of new launches doubled from one to two, a 100% increase, while funds mobilized rose by 23.4%, from ₹445 crores to ₹549 crores. This growth suggests investors are seeking balanced options that offer both stability and potential returns.
- February: 1 open-end (₹445 crores), 0 close-end
- March: 2 open-end (₹549 crores), 0 close-end
- Schemes Increase: +1 (+100%)
- Funds Mobilized Increase: ₹104 crores (23.4%)
Other Schemes: Fewer Launches, Explosive Fund Growth
The Other Schemes category, encompassing Index Funds and ETFs, presented a mixed picture. The number of new schemes decreased by 33.3%, from 18 to 12, yet funds mobilized soared by 192.3%, rising from ₹736 crores to ₹2,151 crores. This surge was largely driven by a single Index Fund in March that raised ₹2,049 crores, highlighting strong demand for passive investment vehicles.
- February: 18 open-end (₹736 crores), 0 close-end
- Index Funds: 12 (₹671 crores), GOLD ETFs: 1 (₹11 crores), Other ETFs: 5 (₹54 crores)
- March: 12 open-end (₹2,151 crores), 0 close-end
- Index Funds: 1 (₹2,049 crores), GOLD ETFs: 1 (₹12 crores), Other ETFs: 10 (₹90 crores)
- Schemes Decrease: -6 (-33.3%)
- Funds Mobilized Increase: ₹1,415 crores (192.3%)
Overall Trends: A Pivot to Open-End Funds
A notable structural shift occurred between the two months: while February included one close-end scheme (a Fixed Term Plan raising ₹72 crores), all 30 schemes launched in March were open-end. This move away from close-end offerings may reflect fund houses aligning with investor preferences for flexibility.
- Total Schemes:
- February: 29 (28 open-end, 1 close-end)
- March: 30 (30 open-end, 0 close-end)
- Increase: +1 (+3.45%)
- Total Funds Mobilized:
- February: ₹4,029 crores (₹3,957 crores open-end, ₹72 crores close-end)
- March: ₹4,085 crores (all open-end)
- Increase: ₹56 crores (+1.39%)
The mutual fund industry’s new launches in March 2025 reveal a strategic pivot towards debt and index-based products. The robust growth in funds mobilized for Income/Debt Oriented Schemes and Other Schemes particularly Index Funds contrasts sharply with the retreat in Growth/Equity Oriented Schemes. This shift likely reflects investor preference for lower-risk or passive strategies amid evolving market conditions. Meanwhile, the uptick in Hybrid Schemes suggests a balanced approach remains appealing.
As the market continues to evolve, the strong demand for debt and index funds signals a potential trend that industry watchers will monitor closely in the coming months. Whether this shift persists or equity schemes rebound will depend on broader economic factors and investor confidence.