Equity Fund Inflows Dip to Rs 24,690 Crore in October
Actively managed equity mutual funds witnessed a slowdown in October 2025, with total inflows falling by 19% month-on-month to Rs 24,690 crore. In comparison, investors had poured Rs 30,421 crore into equity schemes in September.
Despite the decline in equity fund investments, the overall mutual fund industry saw a sharp turnaround in October as total net inflows reached Rs 2.15 lakh crore, compared to an outflow of Rs 43,146 crore in September.
Mutual Fund Industry AUM Touches All-Time High
The total assets under management (AUM) of India’s mutual fund industry climbed to a record Rs 79.87 lakh crore in October, up from Rs 75.61 lakh crore in the previous month. The growth was driven mainly by strong inflows in liquid and hybrid categories.
Category-Wise Fund Flows in October 2025
- Large Cap Funds: Rs 972 crore (down from Rs 2,319 crore in September)
- Mid Cap Funds: Rs 3,807 crore (down from Rs 5,085 crore)
- Small Cap Funds: Rs 3,476 crore (down from Rs 4,363 crore)
- Sectoral & Thematic Funds: Rs 1,366 crore (up from Rs 1,221 crore)
- ELSS (Tax-Saving Funds): Outflow of Rs 665 crore
SIP Inflows Hit Record Rs 29,529 Crore in October Despite Market Volatility
Systematic Investment Plan (SIP) inflows touched a record high of Rs 29,529 crore in October, slightly higher than Rs 29,361 crore in September, reflecting strong confidence among retail investors. Despite market fluctuations, investors continued their regular investments through SIPs, mainly via digital platforms and distributors.
However, industry experts noted that overall equity flows declined due to market volatility, profit booking, and a shift of funds toward safer or diversified options like hybrid schemes, multi-asset funds, and gold ETFs. Gross inflows remained steady at around Rs 60,000–65,000 crore, while temporary liquidity tightness caused by recent IPOs also affected net flows. Analysts expect SIP inflows to remain strong as retail investors continue focusing on long-term wealth creation.
Debt and Liquid Fund Trends
Liquid funds saw significant volatility, recording outflows of Rs 89,375 crore in October compared to Rs 66,042 crore the month before. The movement was largely due to corporate withdrawals around the quarterly advance tax cycle.
Hybrid and ETF Segments Remain Strong
Hybrid schemes remained a bright spot, with inflows rising to Rs 14,156 crore in October from Rs 9,397 crore in September. Exchange Traded Funds (ETFs) attracted Rs 6,182 crore (down from Rs 8,151 crore), while Gold ETFs saw marginally lower inflows of Rs 7,743 crore (versus Rs 8,363 crore previously).
New Fund Offers (NFOs) contributed significantly to the overall inflows, adding Rs 6,062 crore in October compared to just Rs 1,959 crore in September.
Investor Sentiment and Outlook
Analysts believe that while October saw a dip in equity mutual fund inflows, the long-term investor sentiment remains intact due to consistent SIP participation and growing retail interest. Experts also note that inflows into hybrid and sectoral funds indicate investors are seeking diversified opportunities amid market volatility.
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