Mutual funds saw an outflow of Rs 43,146 crore in September, compared to an inflow of Rs 52,443 crore in August, marking a fall of 182% month-on-month in net flows, according to the latest data from the Association of Mutual Funds in India (AMFI). Since April 2025, this is the first time that total flow has turned negative this financial year.
Equity funds, however, continued to attract investments, with inflows of Rs 30,422 crore in September, slightly down from Rs 33,430 crore in August, a drop of about 9%.
The total net Assets Under Management (AUM) of mutual funds rose to Rs 75.61 lakh crore in September, up from Rs 75.2 lakh crore, reflecting a 0.53% increase month-on-month, while equity AUM reached Rs 33.7 lakh crore, up from Rs 33.1 lakh crore, marking a 1.81% rise.
Equity flows stay strong
Equity mutual funds continued to attract steady investor interest, clocking Rs 30,422 crore in inflows in September, 9% lower than Rs 33,430 crore in August. Despite market volatility, investor sentiment toward equities remained firm, supported by sustained retail participation and SIP contributions. Over the past six months, equity inflows have stayed consistently above Rs 19,000 crore, reflecting confidence in long-term market prospects.
Flexi-cap funds topped the list with Rs 7,029 crore, followed by mid-cap funds at Rs 5,085 crore and small-cap funds at Rs 4,363 crore, showing continued retail appetite for growth-oriented schemes. Large- and mid-cap funds attracted Rs 3,805 crore, while multi-cap funds added Rs 3,560 crore, highlighting investor preference for balanced exposure across market caps.
Large-cap funds drew Rs 2,319 crore, reflecting a tilt toward stability amid volatile markets. In contrast, sectoral/thematic funds saw inflows cool sharply to Rs 1,221 crore from Rs 3,893 crore in August. Value/contra funds continued to gain traction with Rs 2,108 crore.
Gold ETFs shine
After small outflows in March and April 2025, inflows has surged sharply, peaking at Rs 8,363 crore in September against Rs 2,190 crore in August, registering a surge of 282 percent. The total AUM of gold ETFs now exceeds Rs 90,000 crore.
Debt funds see heavy redemptions
Debt funds turned sharply negative, with Rs 1.02 lakh crore in outflows the highest since April 2024. In contrast, August had seen modest outflows of Rs 7,979 crore, while July had recorded massive inflows of Rs 1.07 lakh crore. The debt segment remains highly sensitive to rate cycle shifts and liquidity conditions.
Liquid funds recorded the steepest withdrawal of Rs 66,042 crore, followed by money market funds at Rs 17,900 crore, as institutional investors pulled out capital for quarter-end requirements.
Other short-term categories such as ultra-short-duration funds (Rs 13,606 crore) and short-duration funds (Rs 2,173 crore) also witnessed strong redemptions. Corporate bond funds and low-duration funds posted outflows of Rs 1,444 crore and Rs 1,253 crore, respectively.
In contrast, longer-tenure funds such as long-duration and medium-to-long-duration funds saw modest inflows of Rs 61 crore and Rs 103 crore, respectively, while dynamic bond funds gained Rs 519 crore.
Hybrid and other categories steady
Hybrid schemes saw moderate inflows of Rs 9,397 crore, lower than August’s Rs 15,293 crore but continuing their positive run for the sixth consecutive month. The ‘Others’ category, which includes ETFs and index funds, also saw robust inflows of Rs 19,057 crore, reflecting growing investor preference for passive products.
Solution-oriented funds reported modest inflows of Rs 286 crore, while closed-ended schemes continued to see outflows of Rs 311 crore.
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