'Buy the dip': Zerodha's Nithin Kamath asks - where’s all this money coming from? X users react
Kamath referred to data from Zerodha, which show inflows into equity mutual funds in April amounted to Rs 40.4K crore, rising 55.38% from March 2026.
- May 1, 2026,
- Updated May 1, 2026 3:47 PM IST
Zerodha's Nithin Kamath has posted on social platform X commenting on the inflows in mutual funds in April. Kamath's tweet comes at a time when FIIs have sold around equities worth Rs 70,000 crore in cash last month. This comes after FIIs offloaded their worst month ever in March 2026, offloading Rs 1.11 lakh crore worth of equities.
Coming back to the social post, Kamath said, "Who are the people who continue to "buy the dip"? Where's all this money coming from?"
Kamath referred to data from Zerodha, which show inflows into equity mutual funds in April amounted to Rs 40.4K crore, rising 55.38% from March 2026.
Kamath wondered in his post that where is all this money coming from?
On similar lines, flows into index funds zoomed 156% to Rs 8.2k crore in last month against Rs 3.2 k crore in March 2026.
While FIIs continued their selling spree in April, Equity MFs and Index funds witnessed robust inflows in the same moth. reacting to this, Kamath asked in his tweet that who are the people who bought the dip.
Replying to his tweet, one X user with account id @Malay4Product said, "The money is coming from our salary, Nithin. And about 9.7 crore other SIP accounts that auto-debit on the 5th of every month whether the market is green or red.
March 2026 SIP inflow was Rs 32,087 crore. That is a record. FPIs sold 1.14 lakh crore that same month and mutual funds bought 1.05 lakh crore back. Almost a perfect offset."
Anand Chaudhari with X account id @TradesByAnand in a hilarious reply said: "Work 9-5- Get salary-Buy the dip-Watch it dip further-Work 9-5."
Malhar, another X user said the source of inflows into funds is "Mostly SIP flows + retail participation. Monthly automatic inflows keep coming regardless of market sentiment, and years of 'buy every dip' working has conditioned investors to stay aggressive. Liquidity itself is now a major market driver."
FAQs
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Why did Nithin Kamath raise questions about mutual fund inflows in April 2026?
Nithin Kamath questioned the strong inflows because foreign institutional investors were heavily selling Indian equities, yet equity mutual funds and index funds continued to receive large amounts of money. He highlighted the contrast between FII selling and domestic investors continuing to buy the dip.
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How much money flowed into equity mutual funds and index funds in April 2026?
According to the data cited in the post, equity mutual funds saw inflows of around Rs 40.4 thousand crore in April 2026, up 55.38 percent from March. Index fund inflows also jumped sharply to about Rs 8.2 thousand crore from roughly Rs 3.2 thousand crore in March.
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Why are retail investors still investing despite market declines?
A major reason is SIP investing. Many investors put money into mutual funds every month through automatic debits linked to salary income. These flows continue whether markets are rising or falling, which helps sustain inflows even during corrections.
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What role did SIPs play in offsetting FII selling?
SIPs played an important role by bringing steady domestic money into the market. One response to Kamath’s post pointed out that March 2026 SIP inflows touched a record Rs 32,087 crore, while FPIs sold Rs 1.14 lakh crore and mutual funds bought back around Rs 1.05 lakh crore, nearly balancing the outflow.
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What does this trend suggest about the Indian stock market?
The trend suggests that domestic liquidity, especially from retail investors and SIPs, has become a major force in the Indian market. Even when FIIs sell aggressively, consistent mutual fund inflows can provide meaningful support to equities.
Zerodha's Nithin Kamath has posted on social platform X commenting on the inflows in mutual funds in April. Kamath's tweet comes at a time when FIIs have sold around equities worth Rs 70,000 crore in cash last month. This comes after FIIs offloaded their worst month ever in March 2026, offloading Rs 1.11 lakh crore worth of equities.
Coming back to the social post, Kamath said, "Who are the people who continue to "buy the dip"? Where's all this money coming from?"
Kamath referred to data from Zerodha, which show inflows into equity mutual funds in April amounted to Rs 40.4K crore, rising 55.38% from March 2026.
Kamath wondered in his post that where is all this money coming from?
On similar lines, flows into index funds zoomed 156% to Rs 8.2k crore in last month against Rs 3.2 k crore in March 2026.
While FIIs continued their selling spree in April, Equity MFs and Index funds witnessed robust inflows in the same moth. reacting to this, Kamath asked in his tweet that who are the people who bought the dip.
Replying to his tweet, one X user with account id @Malay4Product said, "The money is coming from our salary, Nithin. And about 9.7 crore other SIP accounts that auto-debit on the 5th of every month whether the market is green or red.
March 2026 SIP inflow was Rs 32,087 crore. That is a record. FPIs sold 1.14 lakh crore that same month and mutual funds bought 1.05 lakh crore back. Almost a perfect offset."
Anand Chaudhari with X account id @TradesByAnand in a hilarious reply said: "Work 9-5- Get salary-Buy the dip-Watch it dip further-Work 9-5."
Malhar, another X user said the source of inflows into funds is "Mostly SIP flows + retail participation. Monthly automatic inflows keep coming regardless of market sentiment, and years of 'buy every dip' working has conditioned investors to stay aggressive. Liquidity itself is now a major market driver."