Equity-oriented mutual funds reported net inflows of ₹30,405 crore in September, marking the second straight month of slowdown after July’s record ₹42,703 crore and ₹33,417 crore in August.
However, analysts view the trend as a healthy consolidation rather than fatigue.
“While the pace of inflows softened, the overall trend continues to reflect sustained investor confidence in equities, supported by steady SIP contributions and retail participation,” said Nehal Meshram, Senior Analyst – Manager Research, Morningstar Investment Research India.
“Investors remained undeterred by intermittent market volatility and global uncertainties, reaffirming their long-term commitment to equity investing,” Meshram said.
Flexi-cap funds led the inflows with ₹7,029 crore, followed by mid-cap and small-cap funds at ₹5,085 crore and ₹4,363 crore, respectively.
Large-cap funds saw moderate additions of ₹2,319 crore as investors turned selective at elevated valuations.
Meshram added that the moderation in flows appears “cyclical rather than structural”, coming after exceptionally strong buying in previous months.
Sectoral and thematic funds attracted ₹1,220 crore, aided partly by a new fund launch, while ELSS and dividend yield funds posted outflows of ₹308 crore and ₹168 crore.
New fund offers mobilised ₹1,959 crore across nine schemes, led by the Baroda BNP Paribas Business Conglomerates Fund.
Analysts say the persistence of strong SIP momentum signals that retail investors continue to prioritise long-term wealth creation through disciplined allocations, even as lump-sum flows turn more measured.