PSU mutual funds bleed Rs 4498 crore in March as sectors pivot to domestic capex

Outflows ease slightly, but consumption exits keep surprising investors

PSU mutual funds recorded Rs 4,498 crore in outflows in March, a modest improvement from February, per Vallum Capital. Despite solid long-term performance, sector flows were uneven: consumption saw withdrawals, while manufacturing, infrastructure, defence and pharma pulled in fresh money—hinting investors are rotating toward domestic capex themes even as broader sentiment stays cautious.