Equity mutual fund inflows dropped 19% month-on-month in October 2025 to ₹24,671 crore, compared with ₹30,405 crore in September, according to data released by the Association of Mutual Funds in India (AMFI).
Despite the moderation in equity inflows, the mutual fund industry’s total assets under management (AUM) rose to a record ₹79.87 lakh crore, up from ₹75.61 lakh crore in the previous month, reflecting steady investor participation and strong inflows into debt and hybrid categories.
Equity Inflows Ease Across Categories
Most equity fund segments witnessed a slowdown during October:
- Large-cap funds: Inflows dropped to ₹972 crore, from ₹2,319 crore in September.
- Mid-cap funds: Reported inflows of ₹3,807 crore, down from ₹5,085 crore.
- Small-cap funds: Attracted ₹3,476 crore, compared with ₹4,363 crore previously.
Sectoral and thematic funds, however, remained a bright spot, with inflows increasing to ₹1,366 crore from ₹1,221 crore in the prior month.
On the other hand, Equity-Linked Savings Schemes (ELSS) saw deeper net outflows of ₹665 crore, widening from ₹308 crore in September.
Debt Funds See Sharp Rebound
Debt-oriented mutual funds posted a strong recovery, logging net inflows of ₹1.59 lakh crore in October, a sharp reversal from ₹1.01 lakh crore of outflows in September.
The surge was largely driven by improved liquidity in short-term categories and increased participation from institutional investors.
Key contributors included:
- Liquid funds: ₹89,375 crore
- Money market funds: ₹17,916 crore
- Ultra-short duration funds: ₹15,067 crore
- Overnight funds: ₹24,051 crore
Hybrid and Passive Funds Maintain Momentum
Hybrid schemes saw continued investor interest, with inflows rising to ₹14,156 crore, up from ₹9,397 crore in September. The uptick was led by balanced advantage and dynamic allocation funds, which appeal to investors during volatile market phases.
Among passive products:
- ETFs recorded inflows of ₹6,182 crore, slightly lower than ₹8,151 crore in September.
- Gold ETFs attracted ₹7,743 crore, marginally below ₹8,363 crore, as investors booked partial profits amid recent gold price rallies.
AUM at Record High Despite Softer Equity Flows
The mutual fund industry’s total AUM climbed to an all-time high of ₹79.87 lakh crore, supported by robust inflows into debt and hybrid categories and steady Systematic Investment Plan (SIP) contributions.
Even as equity inflows moderated, continued retail participation and consistent fund mobilisations reinforced confidence in mutual funds as a long-term investment vehicle amid uncertain market conditions.
Summary
While October saw a 19% decline in equity mutual fund inflows, strong momentum in debt, hybrid, and passive categories propelled the industry’s AUM to a record ₹79.87 lakh crore. The data underscores resilient investor sentiment and the growing diversification of investment preferences across asset classes, reflecting the maturity of India’s mutual fund ecosystem.
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