Even as the overall inflows in equity-oriented mutual fund categories reported an 18.84 per cent decline in net inflows at Rs 24,690 crore in October from Rs 30,422 crore in September 2025, mid-cap and small-cap funds saw reduced traction, with inflows dropping 25 per cent and 20 per cent to Rs 3,807 crore and Rs 3,476 crore, respectively.
Gold exchange traded funds (ETFs) got inflows of Rs 7,743 crore in October and Rs 8,363 crore in September. The AUM of gold ETFs has jumped Rs 30,000 crore in the last two months to Rs 1.02 lakh crore amid the rise in gold prices.
According to figures available from the Association of Mutual Funds in India (AMFI), Flexicap funds emerged as the top investor preference, witnessing a 27 per cent rise in inflows to Rs 8,928 crore. This was now the third consecutive month which witnessed moderation in net inflows into equity categories.
The decline in inflows into mid-cap and small-cap funds follows concerns over high valuations in these segments and the surge of high-priced IPOs entering the market.
“The trends that we are seeing is clearly a shift in asset allocation in favour of commodities such as gold and silver. In the last two months, gold ETFs net sales have gone up 300 per cent. In addition, net sales on asset allocation funds such as multi-asset fund (with exposure to gold) are also witnessing sustained flows of over Rs 5,000 crore which used to be around Rs 2,000 crore six months back,” said Akhil Chaturvedi, Executive Director and Chief Business Officer, Motilal Oswal Asset Management Company. Gold and silver have outperformed Indian equities over the last one year and the shift in the allocation pattern is quite on expected lines, he said.
Inflows through SIPs have grown marginally to Rs 29,530 crore in October 2025 as against Rs 29,360 crore in September.
The moderation in net inflows could be attributed to profit booking by investors given the sharp surge in the equity markets along with the festive season. While the pace of inflows softened, the overall trend continues to reflect sustained investor confidence in equities, said Himanshu Srivastava, principal research, Morningstar Investment Research
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Venkat N Chalasani, chief executive, AMFI, said assets under management (AUM) reached an all-time high of Rs 79.9 lakh crore in October 2025, driven by strong retail participation and record SIP inflows from over 9.45 crore contributing accounts. The demand for gold and silver exchange-traded funds (ETFs) highlights investors’ desire to diversify their portfolios and hedge against market volatility. Investors are increasingly embracing disciplined, long-term investing through SIPs reflecting growing financial maturity and trust in the mutual fund ecosystem, Chalasani said.
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