Equity MFs Cool Off; SIPs Soar


‘AUM reached an all-time high of Rs 79.9 trillion in October 2025, driven by strong retail participation and record SIP inflows of Rs 29,529 crore from over 94.5 million contributing accounts.’

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Equity mutual fund inflows eased for the third consecutive month in October, slipping 19 per cent month-on-month to Rs 24,690 crore.

Industry players said the decline stemmed from profit-taking after a sharp run-up in the equity market, which pushed benchmark indices close to record highs.

SIPs, however, bucked the trend, with flows rising to a new high of Rs 29,529 crore.

“The moderation in net inflows could be attributed to profit booking by investors given the sharp surge in equity markets, along with the festival season,” said Himanshu Srivastava, associate director — manager research, Morningstar India.

“While the pace of inflows softened, the overall trend continues to reflect sustained investor confidence in equities,” Srivastava added.

The fall in net inflows was driven by a 4 per cent drop in fresh investments and an 8 per cent increase in redemptions, according to data from the Association of Mutual Funds in India (Amfi).

While most equity fund categories saw lower inflows, flexicap funds recorded a rise in collections.

The category — on the verge of becoming the largest equity fund segment — mopped up nearly Rs 9,000 crore in October, compared with Rs 7,000 crore in September.

The inflows were propped up by Rs 1,684 crore from new fund offerings.

Inflows into debt and hybrid funds also rose last month, aided by strong institutional participation and investor preference for lower-risk and asset allocation products.

Debt fund inflows stood at Rs 1.6 trillion in October, against outflows of Rs 1 trillion in September.

Hybrid fund inflows jumped nearly 50 per cent to Rs 14,156 crore.

“Hybrid funds, particularly arbitrage strategies, are seeing renewed interest as investors look to tactically park money for future equity deployment.

“Multi-asset funds are another category seeing steady growth in net inflows.

“The passive segment remains strong, with index funds seeing a 22 per cent rise in flows,” said Suranjana Borthakur, head of distribution and strategic alliances, Mirae Asset Investment Managers (India).

Passive funds together gathered Rs 16,668 crore, with the bulk of flows going into gold and silver exchange-traded funds (ETFs).

“Gold ETFs continued to attract steady investor interest in October 2025, with net inflows of Rs 7,743 crore, following record inflows of Rs 8,363 crore in September,” said Nehal , senior analyst — manager research, Morningstar India.

“The sustained momentum highlights investors’ continued preference for gold as a safe haven and portfolio diversifier amid lingering geopolitical risks, global market volatility, and uncertainty around the interest-rate trajectory of major central banks,” added Meshram.

The surge in flows across select segments, coupled with mark-to-market gains in equity funds, pushed the industry’s assets under management (AUM) to a new high.

“AUM reached an all-time high of Rs 79.9 trillion in October 2025, driven by strong retail participation and record SIP inflows of Rs 29,529 crore from over 94.5 million contributing accounts,” said Venkat N Chalasani, chief executive, Amfi.

“Equity inflows,” added Chalasani, “remained robust at Rs 24,690 crore, marking the 56th consecutive month of positive flows.”

Feature Presentation: Ashish Narsale/Rediff



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