Ahmedabad: Equity mutual fund assets under management (AUM) in Gujarat rebounded sharply over the past two months, rising by nearly Rs 28,500 crore. The recovery follows a Rs 19,481-crore decline in March, when equity assets fell 5.25% amid heightened global uncertainty and geopolitical tensions, according to data released by the Association of Mutual Funds in India (AMFI).The state’s equity AUM rose from Rs 3.51 lakh crore in March 2026 to Rs 3.80 lakh crore in May 2026 — a record-high level. After the correction, equity AUM increased by Rs 14,209 crore in April and a further Rs 14,251 crore in May, taking the total assets to their highest level.Financial consultants advised that the recovery was driven not only by a rebound in stock prices but also by strong lump-sum investments from affluent investors who viewed the correction as a buying opportunity.“April and May saw significant lump-sum inflows as investors deployed surplus liquidity following the market correction. This clearly reflects the maturing profile of Gujarat investors,” said Mumukshu Desai, director of a city-based financial advisory firm.According to Desai, high-net-worth individuals (HNIs), ultra-high-net-worth individuals (UHNIs) and family offices were among the biggest contributors to inflows in April. While systematic investment plan (SIP) closures weighed on inflows during the month, large-ticket investments more than compensated for the impact.Investor sentiment improved further in May as indications emerged that the West Asia conflict was easing. Factors such as the resumption of refinery operations in Jordan and Qatar and a decline in crude oil prices were seen by investors as signs that geopolitical tensions could subside, according to financial consultants.“Retail and medium-HNI investors also stepped up lump-sum investments in May, encouraged by market volatility and the perception that valuations had become more attractive. Markets have not revisited the peaks seen in 2024 for nearly 17 months. The correction in March prompted investors, especially those with additional liquidity, to increase allocations to equity mutual funds,” Desai said.Industry observers said the trend highlights growing sophistication among Gujarat investors, who increasingly appear willing to deploy capital during periods of market weakness rather than wait for sentiment to improve.
