The mutual fund industry witnessed a mixed performance in September 2025, marked by a decline in equity inflows and significant outflows from debt schemes.
According to the Association of Mutual Funds in India (AMFI), actively managed equity mutual funds registered inflows of ₹30,421.69 crore in September, which was 9% lower than the ₹33,430.37 crore recorded in August.
Meanwhile, the overall mutual fund industry recorded a net outflow of ₹43,146.32 crore, reversing the ₹52,442.78 crore inflow from the previous month.
In the equity segment, all major categories witnessed a decline in inflows compared to August.
Large-cap funds saw inflows decline from ₹2,834.88 crore in August to ₹2,319.04 crore in September, a fall of 18.2%.
Mid-cap funds reported inflows of ₹5,085.40 crore versus ₹5,390.62 crore earlier, reflecting a 5.6% decrease.
Small-cap funds witnessed inflows of ₹4,362.91 crore, 12.6% lower than August’s ₹4,992.90 crore.
Flexi-cap funds also saw a marginal decline, with inflows of ₹7,029.26 crore compared to ₹7,679.40 crore earlier, representing an 8.5% fall.
Sectoral and thematic funds faced the steepest drop, with inflows plunging from ₹3,893.16 crore to ₹1,220.89 crore — a sharp 68.6% decline month-on-month.
A notable exception was the Value/Contra Fund category, which showed strong momentum. Inflows jumped from ₹1,141.03 crore in August to ₹2,107.93 crore in September, marking an 84.7% increase month-on-month.
Similarly, Large & Mid Cap Funds recorded inflows of ₹3,805.17 crore, up 14.42% from ₹3,325.66 crore in August.
Debt-oriented mutual funds continued to experience massive outflow. The category saw a total outflow of ₹1.01 lakh crore in September compared to ₹7,979.83 crore in August, indicating a strong redemption.
Overnight funds reported inflows of ₹4,279 crore versus ₹4,950.84 crore last month, marking a 13.6% decline. Along with this, the Medium to Long Duration Fund, Long Duration Fund, and Dynamic Bond Fund witnessed inflows in September month.
Liquid funds continued with outflows of ₹66,042.32 crore, increasing by 394.70% from ₹13,350.05 crore in August.
Low Duration Fund, Money Market Fund, Short Duration Fund, and Medium Duration Fund turned negative from inflows in August
Hybrid funds experienced lower inflows during September, collecting ₹9,397.22 crore compared to ₹15,293.69 crore a month earlier, a decline of 38.6%.
Arbitrage funds shifted from inflows of ₹6,666.50 crore in August to a marginal inflow of ₹988.25 crore, registering an 85% fall.
Passive funds showed contrasting movement, with total inflows at ₹19,056.51 crore compared to ₹11,436.79 crore in August, rising by 66.6%.
Gold ETFs were the highlight of the month, recording inflows of ₹8,363.13 crore — a massive 282% increase from ₹2,189.51 crore in August, due to the spike in gold prices.
New fund launches slowed in September. The total inflow into active equity NFOs stood at ₹274 crore, a significant 86.7% drop from ₹2,056 crore in August. Across all categories, nine new fund offerings garnered ₹1,959 crore, compared to 10 new launches that mobilised ₹2,859 crore in the previous month — a 31.5% decline in overall NFO inflows. Index funds dominated new launches, with four fresh offerings introduced during the month.
Overall, the mutual fund industry in September 2025 reflected cautious investor sentiment, with declining inflows by 9% across equity categories and an over 1,000% increase in outflows from debt funds.
However, the strong surge(282%) in Gold ETF inflows and steady participation in passive schemes indicated a shift toward safer and diversified investment options amid evolving market conditions.
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