Gold ETFs Log Record Inflows in September; Equity Fund Inflows Ease for Second Month

Inflows into gold exchange-traded funds reached an all-time high in September 2025, even as equity mutual fund inflows declined for the second consecutive month. Data from the Association of Mutual Funds in India showed investors turning to gold amid volatile markets.

Gold ETFs received net inflows of ₹83.63 billion, sharply higher than ₹21.89 billion in August, reflecting increased interest in the metal as global uncertainty and volatile asset prices prompted portfolio diversification.

Equity mutual fund inflows fell 9% month-on-month to ₹304.21 billion from ₹334.30 billion in August. This follows a 22% decline in the previous month, marking a clear moderation in fresh equity investments. The decline was broad-based across market capitalisations--large-cap inflows fell 18%, mid-cap 4.5%, and small-cap 12.6%.

Among categories, flexi-cap funds attracted the highest inflows at ₹70.29 billion, followed by mid-cap funds at ₹50.85 billion and small-cap funds at ₹43.63 billion. Large- and mid-cap funds saw inflows of ₹38.05 billion, and multi-cap funds added ₹35.60 billion. Large-cap funds drew ₹23.19 billion, while sectoral/thematic fund inflows cooled sharply to ₹12.21 billion from ₹38.93 billion in August. Value and contra funds continued to gain flows of ₹21.08 billion.

Debt schemes saw a significant outflow of ₹1.01 trillion, compared to ₹79.80 billion in August. Liquid funds led the withdrawals with ₹660.42 billion, followed by money market funds with ₹179.00 billion. Overnight funds recorded modest inflows of ₹42.79 billion, down from ₹49.50 billion. The redemptions were largely driven by institutional quarter-end cash requirements.

Hybrid schemes maintained positive traction with net inflows of ₹93.97 billion, lower than ₹152.93 billion in August but marking a sixth consecutive month of net additions.

Systematic Investment Plan inflows reached ₹293.61 billion in September, up from ₹282.65 billion in August, showing steady retail participation.

Total industry assets under management rose to ₹75.61 trillion from ₹75.20 trillion in August, an increase of 0.53%. Equity AUM stood at ₹33.7 trillion, up 1.81% month-on-month.