Mutual Funds

'Passive funds follow rules; active funds chase opportunities,' say experts

India's AIF industry urges tax parity for private credit funds and clearer rules for Category III AIFs in the upcoming Union Budget to ensure fair treatment and reduce disputes

Mutual funds pumped a record ₹4.9 trillion into equities in 2025, driven by strong SIP inflows and retail participation despite volatile markets

After underperforming in 2025, small-cap funds may see a turnaround as valuations become more reasonable and earnings revive; existing investors should stay invested, while new ones enter gradually

As the Sensex turns 40, passive investing is reshaping India's markets, with indices emerging as the backbone of ETFs and low-cost investment products

Rise in debt, commodity ETF inflows offset lower lumpsum inflows into equity schemes

Ashika Group on Wednesday announced that it has received in-principle approval from the markets regulator, Sebi, to launch mutual funds. This move allows the company to proceed with establishing an Asset Management Company (AMC) and preparing for the launch of mutual fund schemes, subject to fulfilling Sebi's final registration requirements and conditions, Ashika Group said in a statement. Ashika Group's foray into mutual funds builds on its experience across capital markets and financial services, including retail & Institutional broking, investment banking, research advisory, global family office services, Alternative Asset Management and Private Equity. "The launch of Ashika Mutual Fund is a natural extension of our vision to contribute meaningfully to India's evolving asset management ecosystem," Pawan Jain, Chairman & Managing Director, Ashika Group, said. The proposed fund house aims to offer a range of investment schemes tailored to diverse investor needs.

Mutual fund industry extended its bull run in 2025, adding a staggering Rs 14 lakh crore to its asset base and pushing total AUM to a record Rs 81 lakh crore by November, powered by surge in retail participation and record SIP inflows. Venkat Chalasani, Chief Executive Officer of AMFI, told PTI that the industry's outlook remains positive, with steady SIP inflows continuing to offset foreign portfolio investor outflows and strengthening market resilience. Going ahead, fund flows are likely to be guided by valuations and global developments, with investors increasingly favouring large-cap, diversified and hybrid strategies, he added. The year 2025 also witnessed a robust net inflow of Rs 7 lakh crore, along with a sharp increase of 3.36 crore in the investor base, while SIPs alone contributed about Rs 3 lakh crore, according to data from Association of Mutual Funds in India (AMFI). These inflows lifted the industry's assets under management (AUM) by 21 per cent from Rs 67 lakh crore

Select debt mutual fund categories such as medium duration and floater funds have delivered over 8 per cent returns in the past year, supported by rate cuts and falling yields

A resurgent gold rally has lifted multi-asset funds back into contention, widening their return edge over key equity categories despite lower risk exposure

Flexicap funds top equity MF inflows in 2025, emerging as investors' preferred choice amid volatile markets and becoming the largest equity category by assets

India's top fund managers expect the domestic equity market to move into a steadier, earnings-driven phase after a prolonged period of sharp rallies followed by 13-14 months of consolidation

Although quant and factor strategies are expanding rapidly, investor participation held back by their complexity and inconsistent returns

Sell shares worth nearly ₹8.5K cr so far as markets remain choppy

Amfi's January stock universe reclassification may lift the largecap cut-off to Rs 1.05 trillion and the midcap threshold to Rs 34,800 crore, driven by new listings and higher valuations

Mutual funds launched 222 NFOs and raised ₹63,631 crore in 2025 (as of November), down sharply from 2024, as active equity demand softened amid volatile markets

US-focused mutual funds surged in 2025 on an AI-led rally. In 2026, expect consolidation and moderate returns; rebalance mega-cap tech exposure and invest in phases

Sebi has renamed expense ratio limits as the base expense ratio and moved statutory levies outside the cap, while approving a rewrite of MF regulations to tighten transparency and governance

As 2026 approaches, market experts say a disciplined year-end review of your mutual fund portfolio can make a real difference.

Choose them for their strong wealth creation potential and short lock-in period, especially if you remain on the old tax regime, but don't judge them on past-year returns alone