Mutual fund investors continued to favour equities in October, though the pace of inflows slowed as markets turned range-bound and investors booked profits. According to the latest data from the Association of Mutual Funds in India (AMFI), net inflows into equity mutual funds stood at Rs 24,690 crore — a 19% decline from Rs 30,422 crore in September. This marks the second consecutive month of moderation after August, when inflows had also eased.
Despite the cooling in equity flows, the industry’s overall assets under management (AUM) touched a fresh record of Rs 79.87 lakh crore in October, up from Rs 75.61 lakh crore in September, driven largely by strong inflows into debt funds. Debt mutual funds saw robust net inflows of Rs 1.59 lakh crore, indicating a clear shift towards stability and lower-risk options amid global policy uncertainty and tariff concerns.
“The latest AMFI data indicates a healthy realignment in investor behaviour,” said Umesh Sharma, CIO – Debt, The Wealth Company Mutual Fund. “Investors are not exiting risk; they are recalibrating portfolios with greater nuance.”
Suranjana Borthakur, Head of Distribution & Strategic Alliances at Mirae Asset Investment Managers (India), added that flexi-cap funds continued to attract steady inflows, while small-, mid-, and large-cap categories saw dips due to profit booking. “Hybrid funds, particularly arbitrage and multi-asset strategies, are seeing renewed interest as investors tactically park money for future deployment,” she said.
The passive segment also maintained momentum, with index fund flows rising 22%, while Gold ETFs drew consistent inflows of Rs 7,000–8,000 crore, reflecting ongoing confidence in safe-haven assets.
According to Ankur Punj, MD – Business Head at Equirus Wealth, “Declining equity inflows since August reflect cautious sentiment, while SIP flows remain the backbone of retail participation.” SIP contributions held firm at Rs 29,500 crore, with annualised inflows up 45% year-on-year, now making up nearly 20% of total industry AUM.
Analysts agree that this rebalancing across categories signals a maturing investor base that is more disciplined, diversified, and long-term focused.