Mumbai: A sharp drop in flows into small- and mid-cap funds due to a correction in such stocks, cautionary messages from both fund houses and the regulator, and mandated stress tests on pooled funds had an impact on equity mutual fund purchases in March, when flows declined 16% from February to ?22,633 crore.

However, mutual funds continued to attract retail cash for the 37th consecutive month of net equity inflows. Monthly gross flows through systematic investment plan (SIPs) rose to ?19,271 crore, higher by ?85 crore than Februarys ?19,186 crore.