Equity flows stay constructive in September; diversified cores hold, small-cap cools

Equity schemes retained a positive bias in September 2025, though category-level momentum was more measured than in July and August. The profile of flows emphasised broad, diversified strategies, while more cyclical/specialised cohorts moderated.

At the core, flexi-cap posted the month’s strongest print at Rs +7,029 crore (August: Rs +7,679 crore), signalling continued preference for mandate flexibility. Mid-cap added Rs +5,085 crore (August: Rs +5,331 crore), and large-cap held steady at Rs +2,319 crore (August: Rs +2,835 crore). Large & mid-cap also remained firm at Rs +3,805 crore (August: Rs +3,326 crore), providing a diversified anchor across the size spectrum. Multi-cap printed Rs +3,560 crore (August: Rs +3,193 crore), adding to the diversified momentum.

More specialised segments cooled. Small-cap inflows eased to Rs +4,363 crore (August: Rs +4,993 crore), still positive but notably below the July–August pace. Sectoral/thematic stepped down to Rs +1,221 crore (August: Rs +3,893 crore; July had been much higher), reflecting a clear rotation away from concentrated bets. In the style buckets, value/contra posted Rs +2,108 crore (August: Rs +1,141 crore) and focused funds added Rs +1,407 crore (August: Rs +1,155 crore), while dividend yield saw Rs -168 crore outflows (August: Rs -175 crore). ELSS turned negative again at Rs -308 crore (August: Rs +59 crore).

Put simply, September shows constructive but calmer equity participation, anchored by flexi-cap, large-cap, mid-cap, large-and-mid and multi-cap. The softening in small-cap and the sharper moderation in sectoral/thematic indicate a step back from narrower themes after their strong run, even as the diversified core continues to attract steady money. Against August’s context, the equity complex kept its footing, with a clear tilt toward breadth and flexibility over more concentrated exposures.