19% Drop in Equity Inflows, Mutual Fund AUM Hits Record Rs 79.87 Lakh Crore – Here’s What AMFI Data Reveals

Mutual fund investors continued to pour money into equity schemes in October, although the pace of inflows moderated compared to the previous month. Data from the Association of Mutual Funds in India (AMFI) showed that net inflows into equity mutual funds stood at ₹24,690 crore, a 19% decline from ₹30,422 crore recorded in September.

This slowdown marks the second month of moderation after August, when equity inflows had also declined by 22% month-on-month.

Despite the cooling inflows, the mutual fund industry’s total Assets Under Management (AUM) rose to an all-time high of ₹79.87 lakh crore in October, up from ₹75.61 lakh crore in September. Equity AUM climbed to ₹35.16 lakh crore from ₹33.7 lakh crore in the previous month, reflecting the buoyancy in equity markets and continued investor participation.

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Retail investors continued to drive mutual fund growth, with total folios rising to 25.60 crore in October, indicating sustained interest in systematic investment plans (SIPs) and long-term equity exposure.

In October, 18 new fund offers (NFOs) were launched, all open-ended schemes, across various categories. These included two flexi cap funds, four sectoral funds, one arbitrage fund, two index funds, and eight ETFs, collectively raising ₹6,062 crore, according to AMFI.

While equity fund inflows remained robust, most key categories saw a moderation.

Large-cap funds received ₹972 crore, down from ₹2,319 crore in September.

• Mid-cap funds attracted ₹3,807 crore, a 25% fall from ₹5,085 crore.
• Small-cap funds saw inflows of ₹3,476 crore, compared with ₹4,363 crore earlier.
• Flexi-cap funds also recorded a 27% dip in flows.

On the other hand, sectoral and thematic funds maintained steady traction, with inflows rising to ₹1,366 crore from ₹1,221 crore month-on-month. However, equity-linked savings schemes (ELSS) registered net outflows of ₹665 crore, compared to ₹308 crore in September.

Passive investment avenues continued to find favor among investors. Exchange-traded funds (ETFs) garnered ₹6,182 crore, while gold ETFs recorded inflows of ₹7,743 crore, slightly below the ₹8,363 crore seen in September.
Overall, despite a moderation in equity fund inflows, the mutual fund industry’s record-high AUM reflects the growing maturity of retail investors and their confidence in long-term wealth creation through systematic investment routes.