Equity Mutual Fund Inflows Fall for Third Straight Month in October

Equity mutual fund inflows declined for the third consecutive month in October 2025, falling 19% to ₹246.91 billion.

Among 11 equity fund categories, most registered inflows except dividend yield and ELSS funds, which saw outflows of ₹1.79 billion and ₹6.66 billion, respectively. Flexi-cap funds topped the list with inflows of ₹89.29 billion, up 27% from ₹70.29 billion in September.

Mid-cap and small-cap funds witnessed lower inflows, declining 25% and 20%, respectively. Mid-cap funds drew ₹38.07 billion, while small-cap funds recorded ₹34.76 billion. Large-cap funds reported a sharp fall in inflows to ₹9.72 billion, down 58% from ₹23.19 billion in September. Multi-cap funds added ₹35.60 billion, and large-and-mid-cap funds saw steady inflows of around ₹38.05 billion.

Hybrid funds recorded a notable increase, with net inflows rising 51% month-on-month to ₹141.56 billion from ₹93.97 billion. Within this category, arbitrage funds received the highest inflow at ₹69.19 billion, followed by multi-asset allocation funds with ₹53.44 billion.

Other schemes, including index funds, ETFs, and fund-of-funds, saw a 13% decline in inflows to ₹166.68 billion, compared with ₹190.56 billion in September. Gold ETFs led this segment, attracting ₹77.43 billion, while other ETFs brought in ₹61.81 billion. Index funds received ₹19.29 billion, and fund-of-funds investing overseas added ₹8.14 billion.

Debt-oriented mutual funds rebounded in October, recording net inflows of ₹1.59 trillion, compared with outflows of ₹1.01 trillion in September. The recovery was driven by corporate redeployment of short-term funds. Liquid funds saw inflows of ₹893.75 billion, followed by overnight funds with ₹240.51 billion, money market funds at ₹179.16 billion, and ultra-short duration funds with ₹150.67 billion.

Systematic Investment Plan contributions touched a record ₹295.29 billion in October, marginally higher than ₹293.61 billion in September.

Total industry assets under management rose to ₹79.87 trillion in October from ₹75.61 trillion in September. Equity AUM increased to ₹35.16 trillion from ₹33.7 trillion, reflecting both inflows and market appreciation