Why New US Tariffs Haven’t Shaken Indian MF Investors

Despite headlines about new US tariffs on Indian exports, mutual fund investors remain unshaken. The latest AMFI report shows record SIP inflows of ₹28,464 crore in July 2025—the highest ever—alongside record equity inflows of ₹42,702 crore and a rise in industry AUM to ₹75.36 lakh crore. Even with equity indices falling and FIIs selling, domestic flows and SIP discipline kept sentiment strong.

Why the Impact is Minimal

  1. Domestic flows overpower trade noise – The growing SIP culture, now 9.11 crore accounts, continues to compound wealth, offsetting global headwinds.
  2. Diversified portfolios – Flows were spread across equity, hybrid, and passive funds, limiting the effect of any single sector’s exposure to US markets.
  3. DII support – Domestic institutional investors stepped in even as FIIs pulled out, softening volatility.

The Bigger Picture: Market Diversification

While tariffs could pinch certain export sectors, India is actively widening its trade footprint:

  • Europe: The India-EFTA trade pact is expected to take effect around Oct 2025, while EU-India FTA talks are progressing steadily.
  • Africa & West Asia: The government is targeting ~50 countries in these regions for export growth, with sector-specific strategies in sensitive industries like textiles.

Takeaway for MF Investors

  • Stick to SIPs—volatility can mean better entry prices.
  • Maintain diversified exposure to spread risk.
  • Recognize that India’s policy push toward Europe, Africa, and West Asia will reduce dependency on the US over time.

Bottom line: The combination of strong domestic investment culture and proactive trade diversification is keeping Indian mutual fund investors steady, proving that long-term conviction beats short-term headlines.


This article has been created for knowledge-sharing purposes. Please consult with your financial advisor before making any investment decisions

By Ritesh Chaturvedi

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