In October, data from the Association of Mutual Funds in India (AMFI) displayed a mixed picture for mutual fund flows. The total industry AUM rose to ₹79.87 lakh crore, up from ₹75.61 lakh crore in September — while equity-scheme AUM grew to ₹35.16 lakh crore from ₹33.70 lakh crore.
Naval Kagalwala, COO and Head of Products at Shriram Wealth Ltd. noted, “The Indian MF industry continued its progress towards reaching the US$1 trillion AUM mark, ending October 2025 with an AUM Rs.79.88 lakh crs, a growth of Rs.4.26 lakh crs over Sep 2025. This is a 10x jump over the Rs.0.43 lakh crs growth in month of September 2025 (as compared to August 2025) .
He added, "However, about 68% of the net inflow of Rs.2.15 lakh crs this month is part of Overnight, Liquid, Ultra Short Duration and Money Morket Funds. We expect some of this to exit closer to the Advance Tax payment due date. Despite the volatility in Gold & Silver prices during the month, Gold and Other ETFs remained strong with net inflows of approx. Rs.13,925 crs, though marginally lower than Sep net inflow of Rs.16,514 crs. Gross flows to Index Funds, Gold & Other ETFs collectively was Rs.42,113 crs. The SIP book continues to be strong with an all-time high inflow of Rs.29,529 crs in October.”
Key Highlights
- Equity mutual fund inflows dipped 19% in October, while hybrid and passive categories saw strong traction.
- SIP inflows hit a record ₹29,529 crore, reflecting steady retail participation and long-term investment confidence.
Despite this expansion, net inflows into equity-oriented mutual funds slowed — dropping to ₹24,690 crore in October, a fall of about 19 % month-on-month from September’s ₹30,422 crore.
Notably, fund houses observed investors shifting away from pure equity schemes toward hybrid and passive categories — likely reflecting some short-term caution.
Hybrid fund schemes drew strong interest, with hybrid category inflows at ₹14,156 crore; multi-asset and arbitrage strategies also featured prominently.
Passive funds further strengthened their position: they recorded net inflows of ₹16,668 crore, bringing their AUM to ₹13.66 lakh crore. Gold ETFs stood out, attracting ₹7,743 crore and helping that segment cross the ₹1 lakh crore milestone.
Akhil Chaturvedi, Executive Director and Chief Business Officer, Motilal Oswal Asset Management Company adds, “The trends that we are seeing is clearly a shift in asset allocation in favour of commodities such as Gold & Silver. In the last two months Gold ETFs net sales has gone up 300% to over 7500cr last month, in addition net sales on asset allocation funds such as Multi-Asset fund (with exposure to Gold) are also witnessing sustained flows of over 5000cr which used to around 2000cr 6 months back."
"Needless to say, gold and silver have outperformed Indian equities over 1 year and there for shift in the allocation pattern is quite on expected lines. SIP number has grown marginally to 29530cr (Oct’25) vs. 29360cr (Sept’25)", he stated.
Meanwhile, monthly Systematic Investment Plan (SIP) inflows hit a fresh high of ₹29,529 crore — showing retail investor confidence remains intact even as equity inflows cooled. The SIP count reached 9.88 crore, driven by 60 lakh new registrations in the month.
Also Read: India's Equity Mutual Funds Surpass Rs 50 Lakh Cr for First Time
"The mutual fund industry recorded a strong month, with AUM rising 5.63% MoM to ₹79.87 lakh crore, driven by a 4% market-led MTM lift alongside steady net inflows. Debt AUM rebounded meaningfully to ₹1.60 lakh crore, reflecting renewed confidence in short-duration and liquid strategies as rate expectations stabilise." stated Kartik Jain, MD & CEO, Shriram AMC. "Equity and hybrid active categories saw ₹0.40 lakh crore of net inflows, while gold continued to attract tactical allocations with an additional ₹6,000 crore, supported by improving global sentiment. NFOs contributed nearly ₹6,000 crore, signalling better investor appetite for new product strategies. Liquid funds recorded ₹90,000 crore in flows and money market funds added ₹17,000 crore, reinforcing the preference for liquidity and lower duration risk."
He further added "The addition of 40 lakh new folios and a 45% YoY jump in new SIP registrations to ₹29,631 crore highlight growing investor discipline and broad-based retail participation. Flexi Cap, Arbitrage and Multi Asset Allocation funds emerged as the top gainers in equity inflows."
In summary, while equity mutual-fund inflows have moderated, the broader story across the mutual fund industry is one of diversification — with hybrid and passive strategies gaining traction and retail investors maintaining their SIP-discipline.
