Equity Mutual Fund Inflows Dip 19% in October; Debt Funds Rebound Sharply

Mumbai, November 11: The inflows, or investments in equity mutual funds declined 19% month-on-month in October. This comes after equity mutual funds saw lower demand and participation after a strong run in September, 2025. According to the latest data, net inflows into equity-oriented schemes declined to ₹24,690 crore in October 2025 from ₹30,422 crore in September 2025. This is despite overall industry assets surging over ₹79.87 lakh crore.

Mutual Fund Inflow Highlights

Equity mutual funds continued to witness positive inflows in October 2025. However, its pace was slower compared to September. Net inflows stood at ₹24,690 crore in October compared to ₹30,421 crore in September. Total equity AUM rose 4% month-on-month to ₹35.16 lakh crore. Flexi Cap Funds and Mid Cap Funds saw contributions with investment of ₹8,929 crore and ₹3,807 crore, respectively. However, ELSS funds saw outflows of ₹666 crore due to profit booking ahead of the festive season.

On the other hand, debt mutual funds showcased a turnaround after recording heavy outflows of ₹1.02 lakh crore in September. They recorded net inflows of ₹1.60 lakh crore in October. The net inflows were led by liquid, money market, and ultra-short duration funds.

Meanwhile, hybrid funds continued to see more participation with inflows rising to ₹14,156 crore in October compared with ₹9,397 crore in September. This performance was driven by interest in Balanced Advantage and Arbitrage Funds. Passive investing also maintained its positive performance. Index funds and ETFs collectively witnessed inflows of over ₹16,668 crore.

Strategic Mutual Fund Inflow Overview

Although there was lower inflows in equity mutual funds, analysts noted that the SIP inflows remain strong. Furthermore, the total folio count of the industry has crossed 25.6 crore, with a higher retail participation. Overall, even though there was lower inflows in equity mutual funds, the total AUM of the industry has reached its all time high of ₹79.88 lakh crore in October 2025.

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