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Despite the moderation, August marks the 54th straight month of positive equity flows, highlighting continued investor participation.
The MF industry’s overall assets under management (AUM) edged lower to Rs 75.18 lakh crore in August, from Rs 75.35 lakh crore in July, though still higher than Rs 74.41 lakh crore in June.
The mutual fund industry witnessed a slowdown in equity inflows in August, with net investments slipping 21% month-on-month to Rs 33,430 crore, compared with Rs 42,702 crore in July and Rs 23,587 crore in June, according to the latest data from the Association of Mutual Funds in India (AMFI) released on September 10.
Despite the moderation, August marked the 54th straight month of positive equity flows, highlighting continued investor participation. However, the industry’s overall assets under management (AUM) edged lower to Rs 75.18 lakh crore, from Rs 75.35 lakh crore in July, though still higher than Rs 74.41 lakh crore in June, supported partly by mark-to-market gains.
The pace of new fund launches slowed during the month, with 23 open-ended schemes across categories mobilising Rs 2,859 crore, a sharp drop from Rs 30,416 crore raised by 30 schemes in July.
On the debt side, open-ended funds saw net outflows of Rs 7,980 crore, a significant improvement from the heavy withdrawal of Rs 1,06,801 crore in July. Hybrid funds too witnessed reduced traction, with inflows falling to Rs 15,293 crore from Rs 20,879 crore in July.
Himanshu Srivastava, Associate Director, Manager Research, Morningstar Investment Research India, said, “The equity-oriented mutual fund categories witnessed robust inflows in August 2025, attracting Rs 33,430 crore in net investments. While this underscore sustained investor confidence in equities, the figure was notably lower than July’s record Rs 42,702 crore of net inflows.”
The resilience in August flows can largely be attributed to sustained momentum through Systematic Investment Plans (SIPs), which continued to see strong monthly contributions. Retail investors, in particular, remained consistent in their allocations, undeterred by global volatility. Additionally, growing optimism around India’s economic outlook, aided by reforms such as GST rationalization and expectations of corporate earnings recovery, further supported domestic equity flows. Additionally, market volatility and intermittent corrections created attractive entry points for investors, encouraging fresh investments during the month, he added.
“Diversification trends continued to shape investor behavior, with allocations spread across large-cap, mid-cap, and small-cap funds, and a clear tilt towards strategies with higher mid- and small-cap exposures,” Srivastava said.
Among categories, Flexi-cap funds remained the biggest beneficiary, surpassing last month’s all-time high net inflow of Rs 7,654 crore with a new record of Rs 7,679 crore in August. Mid- and small-cap funds also sustained robust interest, garnering Rs 5,331 crore and Rs 4,993 crore in net inflows, respectively, he added.
Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to personal finance, markets, economy and companies. Having over a decade of experience in financial journalism, Haris h…Read More
Haris is Deputy News Editor (Business) at news18.com. He writes on various issues related to personal finance, markets, economy and companies. Having over a decade of experience in financial journalism, Haris h… Read More
September 10, 2025, 15:51 IST
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