Inflows into mutual fund equity schemes decreased by 19 percent to ₹24,690 crore in October, compared to ₹30,422 crore in September, as investors capitalized on market gains following a sluggish period. This data was released by the Association of Mutual Funds in India.
In contrast, investments in gold and silver exchange-traded funds (ETFs) saw significant interest, with ₹7,743 crore invested in gold ETFs and ₹3,412 crore in silver ETFs last month, down from ₹8,363 crore and ₹5,342 crore, respectively, the previous month.
Flexi-cap funds attracted the highest inflow at ₹8,929 crore, up from ₹7,029 crore. This was followed by mid-cap and small-cap funds, which garnered ₹3,807 crore and ₹3,476 crore respectively, compared to ₹5,085 crore and ₹4,363 crore in September.
However, Equity Linked Savings Schemes (ELSS) and Dividend Yield Funds experienced net outflows of ₹666 crore and ₹179 crore, respectively, indicating a shift in investor sentiment. Venkat Chalasani, CEO of AMFI, noted that the recovery in equity markets, buoyed by fresh foreign portfolio investments, could have prompted some investors to take profits amid consistent returns over recent months.
The industry’s assets under management (AUM) reached a record high of ₹79.9 lakh crore, bolstered by strong retail participation and record systematic investment plan (SIP) inflows. Hybrid funds attracted ₹14,156 crore, up from ₹9,397 crore in September, with arbitrage funds seeing inflows of ₹6,920 crore, recovering from last month’s outflow of ₹988 crore. Multi-asset allocation funds saw inflows of ₹5,344 crore, compared to ₹4,982 crore the previous month.
SIP inflows also reached a new peak at ₹29,529 crore, a slight increase from ₹29,361 crore in September. The number of contributing SIP accounts rose to 9.45 crore, up from 9.25 crore.
Additionally, the industry launched four Specialized Investment Funds, attracting new investments of ₹2,004 crore, resulting in a total AUM of ₹2,010 crore.
Narender Singh, Investment Manager at smallcase, observed that while equity and hybrid schemes saw AUM growth, it occurred at a slower pace, with a slight shift towards debt-oriented products. He added that the flow patterns suggest a moderating investor sentiment following the festival season, as investors await more clarity on market momentum before increasing equity allocations.
Himanshu Srivastava, Principal Research Analyst at Morningstar Investment Research India, indicated that this marks the third consecutive month of declining equity inflows, a trend attributed to profit-taking by investors in light of the recent surge in equity markets and the festive season. The inflows in thematic funds were primarily driven by four new fund offerings that raised approximately ₹2,489 crore; if these were excluded, the category would have shown net outflows.
Published on November 11, 2025.
