Mutual funds in India recorded a moderation in equity inflows in September 2025, according to data released by the Association of Mutual Funds in India (AMFI). Net equity inflows stood at ₹30,405 crore, lower than ₹33,417 crore in August, reflecting cautious investor sentiment amid market fluctuations.
Despite the decline in fresh equity inflows, the industry’s total assets under management (AUM) rose to ₹75.61 lakh crore in September from ₹75.18 lakh crore a month earlier. The steady rise in AUM underscores the resilience of India’s mutual fund sector and continued investor participation through systematic investment plans (SIPs).
Among key equity categories, inflows declined across the board. Large-cap funds saw inflows of ₹2,319 crore, down from ₹2,835 crore in August, while mid-cap funds received ₹5,085 crore versus ₹5,331 crore earlier. Small-cap funds also saw softer interest with ₹4,363 crore in September compared with ₹4,993 crore the previous month.
Sectoral and thematic funds witnessed the sharpest fall, drawing only ₹1,221 crore, compared with ₹3,893 crore in August. Equity-linked savings schemes (ELSS) registered an outflow of ₹308 crore, reversing the marginal inflow of ₹59 crore in the previous month.
Hybrid fund inflows dropped significantly to ₹9,397 crore, from ₹15,294 crore in August, signalling reduced investor appetite for mixed-asset products. New fund offers (NFOs) also slowed, mobilising ₹1,959 crore, down from ₹2,904 crore in the prior month.
On the debt side, the outflow trend deepened. Liquid funds saw heavy withdrawals of ₹66,042 crore, compared with ₹13,350 crore in August, reflecting quarter-end redemptions by corporates and institutional investors. Corporate bond funds posted outflows of ₹1,444 crore, credit risk funds saw ₹256 crore exit, and dividend funds reported an outflow of ₹168 crore.
Exchange-traded funds (ETFs) maintained their momentum, drawing ₹8,151 crore in September, up from ₹7,244 crore in August. Notably, gold ETFs saw record inflows of ₹8,363 crore, a significant jump from ₹2,190 crore in the previous month.
The surge in gold ETF inflows reflects a growing investor shift towards safe-haven assets amid global market volatility, currency fluctuations, and geopolitical uncertainty. As gold prices continue to test new highs, investors appear to be diversifying portfolios with defensive assets.
Read More: AMFI Pitches Mutual Fund-Based Retirement Account
India’s mutual fund industry saw moderated equity inflows in September 2025, even as total AUM remained robust. Investor sentiment appeared cautious, with strong interest in gold and exchange-traded funds offsetting declines in traditional equity and debt categories.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Oct 10, 2025, 1:40 PM IST
Akshay Shivalkar
Akshay Shivalkar is a financial content specialist who strategises and creates SEO-optimised content on the stock market, mutual funds, and other investment products. With experience in fintech and mutual funds, he simplifies complex financial concepts to help investors make informed decisions through his writing.
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