Small-cap and mid-cap funds led inflows, while monthly SIP contributions touched a record ₹32,490 crore. Gold ETFs also saw higher inflows.
Equity mutual fund schemes saw a net inflow of Rs 38,306 crore in September, registering a 31 per cent rise from the preceding month, as investors continued to pour money into mid-cap and small-cap funds despite heightened stock market volatility and sustained selling by foreign portfolio investors (FPIs).
The inflow was higher than the Rs 29,329 crore recorded in August, as per data released by the Association of Mutual Funds in India (AMFI) on Monday.
Further, monthly contributions through systematic investment plans (SIPs) touched an all-time high of Rs 32,490 crore in September, compared to Rs 32,297 crore in August.
Equity inflows hit highest level since April
According to the data, equity-oriented schemes witnessed a net inflow of Rs 38,306 crore in September. This was the highest inflow since April, when these schemes attracted Rs 38,440 crore.
Nitin Agrawal, CEO, Mutual Funds, InCred Money, said that despite heightened volatility in equity markets, every dip presented an opportunity, leading to increased flow activity.
“The strong inflows are particularly encouraging given that equity markets witnessed a correction during the month, accompanied by renewed selling by foreign portfolio investors (FPIs),” Himanshu Srivastava, Principal, Manager Research, Morningstar Investment Research India, said.
Small-cap and mid-cap funds lead inflows
Among equity categories, small-cap funds attracted the highest net inflow of Rs 9,039 crore, up from Rs 7,973 crore in August. This was followed by mid-cap funds that received Rs 7,835 crore, compared with Rs 6,989 crore in the previous month. Together, these two categories accounted for around 44 per cent of the total net equity inflows during the month.
Additionally, flexi cap funds drew Rs 6,702 crore. Large-cap funds, meanwhile, turned positive at Rs 859 crore for the first time in three months, leading investors to find value entry points in quality large-cap stocks.
“This continued preference for mid and small cap strategies suggests that investors remain willing to look beyond near-term market conditions and stay invested in segments they see as offering long-term growth potential,” Varun Gupta, CEO of Groww Mutual Fund, said.
Gold ETF inflows accelerate
Also, Gold ETF (Exchange Traded Funds) inflows accelerated to Rs 4,451 crore in September, compared to Rs 2,597 crore in the preceding month. Silver ETFs registered a net inflow of Rs 1,974 crore.
“The AUM of Gold ETF at Rs 1.86 lakh crore is approaching the recent all-time high. This is not speculative accumulation, it is defensive capital fleeing equity drawdowns and debt uncertainty,” said Manish Mehta, Chief Business Officer, SBI Mutual Fund.
New fund offers mobilise Rs 998 crore
Notably, five equity new fund offers (NFOs) across categories collectively mobilised Rs 998 crore during the month. This was relatively modest compared with the overall net equity inflows of Rs 38,306 crore, suggesting that the strong improvement in flows was largely driven by investments into existing schemes rather than new fund launches, Srivastava said.
Debt schemes see sharp outflows
In contrast, debt mutual fund schemes witnessed a net outflow of Rs 1.83 lakh crore in September, significantly higher than the Rs 8,127 crore withdrawn in August.
Consequently, the mutual fund industry recorded a net outflow of Rs 1.33 lakh crore during the month, reversing the net inflow of Rs 41,354 crore seen in August.
“The swing in flows was driven almost entirely by debt, with virtually every debt category recording net outflows, led by liquid funds (Rs 95,743 crore) and money market funds (Rs 50,846 crore). Both categories had seen net inflows in August,” Groww Mutual Fund’s Gupta said.
SBI Mutual Fund’s Gupta attributed the overall negative flows to redemptions by institutional investors to meet advance tax obligations and quarter-end compliance requirements.
The industry’s total assets under management (AUM) declined to Rs 82.64 lakh crore at the end of September from Rs 87.07 lakh crore at August-end.
Published on October 12, 2026