Equity Mutual Fund Inflows Drop 14% to Rs 32,993 Crore in October
Net investments into Indian equity mutual funds declined nearly 14% month-on-month to Rs 32,993 crore in October from Rs 38,306 crore in September, according to data released by the Association of Mutual Funds in India. Despite the moderation in pure equity allocations, overall open-ended mutual fund schemes registered net inflows of Rs 1.73 lakh crore, reversing an outflow of Rs 1.33 lakh crore recorded in the preceding month. Total industry net assets under management expanded marginally to reach Rs 83.23 lakh crore compared to Rs 82.49 lakh crore at the close of September. Bajaj Broking head of research Sumit Singhania said October's rebound is best read as a liquidity swing, not a broad shift in investor appetite.
Equity Sub-Category Inflows and Divergent Trends
Large and midcap mutual funds attracted the highest quantum of equity capital, absorbing Rs 8,484 crore after inflows surged 99% from Rs 4,271 crore in September. In contrast, smallcap schemes experienced a 29% contraction in net inflows to Rs 6,407 crore, compared to Rs 9,038 crore recorded in the prior month. Flexi cap strategies gathered the third-highest equity allocation at Rs 4,979 crore, closely followed by midcap mutual funds with net subscriptions of Rs 4,892 crore. Large cap funds logged a 20% increase in fresh capital, while equity-linked savings schemes and dividend yield funds registered net redemptions of Rs 577 crore and Rs 92.82 crore, respectively. Lower capital commitments into smallcap funds followed broader equity market pullbacks and stretched valuation levels, according to The Financial Express.
Fixed Income Recovery and Hybrid Allocations
Debt-oriented mutual funds recorded a turnaround with net inflows of Rs 1.13 lakh crore in October after enduring outflows of Rs 1.83 lakh crore in September and Rs 8,127 crore in August. Liquid schemes absorbed the bulk of fixed income allocations, pulling in Rs 70,533 crore after recording an outflow of Rs 95,743 crore in September. Overnight debt funds collected Rs 54,893 crore, while ultra-short to short-term portfolios experienced the largest segment redemption of Rs 3,581 crore. Hybrid funds recorded net receipts of Rs 3,514 crore compared to an outflow of Rs 456 crore in September, driven by arbitrage funds collecting Rs 3,928 crore and multi-asset funds taking Rs 1,514 crore. Gold ETF inflows dropped 22% to ₹3474 crore in October 2026 amid a price correction, according to AMFI data.
Passive Products, Systematic Plans and New Offerings
Exchange-traded funds recorded an inflow of Rs 20,303 crore, representing monthly growth of 31% from Rs 15,501 crore in September, led by equity-oriented ETFs absorbing Rs 12,973 crore. Index funds collected Rs 3,090 crore in net capital, reversing a redemption of Rs 3,614 crore in the preceding period. Monthly Systematic Investment Plan contributions touched Rs 32,160 crore, bringing cumulative SIP assets to Rs 17.68 lakh crore, or 21.25% of total industry assets. AMFI Chief Executive Venkat Chalasani said monthly SIP contributions have risen by around 10% from approximately Rs 29,000 crore in October 2025. Asset management companies introduced 28 new fund offerings during October that garnered Rs 3,829 crore, with ICICI Prudential Contra Fund contributing Rs 1,488 crore.