New Delhi, April 11 -- Equity mutual funds witnessed a net inflow of Rs.40,450 crore in March, marking an increase of 56% from the preceding month, reflecting sustained investor confidence despite market volatility and heightened geopolitical tensions. This was the highest monthly net inflow after July 2025, when the equity-oriented mutual funds received a net inflow of Rs.42,702 crore. "The surge in inflows reflects sustained retail engagement through SIP contributions, year-end portfolio allocations, and investors using recent market corrections as an opportunity to deploy incremental capital into equities," Himanshu Srivastava, Principal Research, Morningstar Investment Research India, said. Umesh Sharma, CIO-Debt, The Wealth Company Mutual, said the inflow rose sharply following the post-correction phase in equity markets after the onset of the West Asia conflict created more attractive investment opportunities. Moreover, monthly contributions through SIPs (Systematic Investment Plans) rose to an all-time high of Rs.32,087 crore from Rs.29,845 crore in the preceding month, highlighting the growing preference for disciplined, systematic investing, according to the data released by the Association of Mutual Funds in India (AMFI). Venkat Chalasani, chief executive at AMFI, said the inflow reflects sustained investor confidence in long-term wealth creation through mutual funds. "India's structural growth story remains strong, and investors continue to align their investments with long-term financial goals". Overall, the mutual fund industry recorded a net withdrawal of Rs.2.4 lakh crore in March after witnessing an inflow of Rs.94,530 crore in February. This was largely driven by a huge outflow of Rs.2.95 lakh crore in debt funds. March typically witnesses a surge in outflows due to higher redemptions, particularly from debt mutual funds, as companies redeem money from liquid funds to meet year-end commitments....