October’s AMFI data shows equity flows moderated, hybrid and passive stayed strong as SIPs hit new high

Morningstar's Himanshu Shrivastava said this dip was the third consecutive monthly drop in net inflows into the equity category. "The moderation in net inflows could be attributed to profit booking by investors given the sharp surge in the equity markets along with festive season. While the pace of inflows softened, the overall trend continues to reflect sustained investor confidence in equities," Himanshu Shrivastava said.

Flexi-cap funds bucked this trend, registering a net inflow of Rs 8,929 crore, higher than September. Vikas Gupta, CEO & Chief Investment Strategist at OmniScience Capital said that while flexi-cap inflows rose, “most other equity categories had lower inflows and overall equity inflows were also lower.” This suggests that conviction in specific segments “seems to be reducing,” with some investors showing uncertainty about the equity outlook, and tactically shifting to arbitrage and multi-asset funds.

Mid and small-cap funds saw their inflows fall to Rs 3,807 crore and Rs 3,476 crore respectively, while large-cap schemes saw net inflows of just Rs 972 crore, a significant drop compared to September. ELSS schemes recorded a net outflow of Rs 666 crore. Despite moderation in flows, equity AUM increased to Rs 35.16 lakh crore, supported by the rally in equity markets seen during October.

Suranjana Borthakur, Head of Distribution & Strategic Alliances at Mirae Asset said the continued inflows in flexi-cap highlights investor preference for diversified strategies. Sectoral flows have normalised after the NFO-led spikes, said Suranjana Borthakurm, describing it as a “healthy sign as investors are becoming more measured and less return-chasing.”

Arbitrage Funds Lead Hybrids
Hybrid schemes drew net inflows of Rs 14,156 crore in October, while arbitrage funds continued to find favour with inflows of Rs 6,920 crore, followed by multi-asset allocation funds that attracted Rs 5,344 crore. Dynamic asset allocation and balanced hybrid funds saw moderate contributions, with the hybrid category’s AUM reaching Rs 10.69 lakh crore by month-end.

Vikas Gupta of OmniScience said one segment of investors is “less confident and allocating to debt-oriented schemes like arbitrage and multi-asset funds,” even though there has been a broader upmove in the equity market.

Borthakur concured, adding that hybrid strategies - particularly arbitrage - are seeing renewed interest as investors “look to tactically park money for future equity deployment.” Multi-asset funds, she added, continue to see steady growth.

Passive funds continue to find takers
Passive funds were in favour, collecting Rs 16,668 crore during the month to take their AUM to Rs 13.66 lakh crore. Gold ETFs had a strong outing as it gathered Rs 7,743 crore to help the category’s AUM cross Rs 1 lakh crore for the first time, with Silver ETFs in tow.

Morningstar India’s Nehal Meshram said gold ETFs continued to attract steady investor interest as “investors maintain allocation to this safe-haven asset amid geopolitical risks, global volatility, and uncertainty around the interest rate trajectory of major central banks.” With cumulative net inflows of Rs 27,573 crore in 2025, gold ETFs remain “one of the most resilient segments in the passive space,” said Nehal Meshram.

AMFI Chairman Venkat Chalasani said the demand for gold and silver exchange-traded funds (ETFs) highlights investors' desire to diversify their portfolios and hedge against market volatility.

SIPs Continue to Grow
The mutual fund SIP flows hit a fresh high of Rs 29,529 crore in October, slightly above the Rs 29,361 crore mark seen in September. Total SIP accounts reached 9.88 crore after 60 lakh new registrations and 45 lakh closures. Borthakur said the continued strength of SIP inflows is “most encouraging,” as it underscores the “maturity and resilience of retail investors,” who are staying disciplined through market cycles. B30 locations contributed about 52 percent of new SIP registrations, though the expected surge from incentive changes has not yet materialised.

SIF Makes Decent Debut
The newly introduced Specialised Investment Funds (SIF) category launched four strategies in October, and marked its debut with net inflows of Rs 2,004 crore, taking AUM to Rs 2,010 crore across 10,212 folios.

NFOs Gather Pace
The New Fund Offerings (NFOs) picked up momentum in October as market sentiment improved. During the month, around 19 NFOs were launched, up from around 9 in September. The total fund mobilised from NFOs for October was around Rs 6,000 crore with around ETFs, Sectoral Funds and Flexi Cap Funds leading the way.

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