The Indian mutual fund industry witnessed remarkable resilience in September 2025, despite global uncertainties and significant foreign institutional investor (FII) outflows. Systematic Investment Plan (SIP) inflows and Gold ETFs hit record highs, reflecting strong investor confidence and the growing popularity of diversified investment options.
Mutual Fund AUM Shows Steady Growth
The average assets under management (AUM) of the mutual fund industry grew marginally by 0.57%, reaching ₹77.78 lakh crore in September. This growth came despite FII outflows of ₹23,885 crore, highlighting the stability of domestic investor participation.
SIP Inflows Touch Record ₹29,361 Crore
September saw SIP inflows rise to ₹29,361 crore, compared to ₹28,265 crore in August, marking a new record. The total number of SIP accounts now stands at 9.73 crore, with 9.25 crore contributing accounts, up from 8.99 crore in August.
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New SIP accounts opened: 67.73 lakh
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Accounts matured/closed/paused: 44.30 lakh
Anand Vardarajan, Chief Business Officer at Tata Asset Management, said, “Equity numbers remain strong despite a flat Nifty over the past year. Primary market activity was robust in September, with several IPOs boosting investor participation. Flexicap, mid-cap, and small-cap funds continued to attract strong inflows.”
Gold and Silver ETFs See Surge in Popularity
Gold ETFs witnessed a record net inflow of ₹8,363 crore, nearly four times higher than August’s ₹2,190 crore. Silver ETFs also gained attention, with inflows of ₹5,341 crore, indicating that 72% of total passive fund inflows went into precious metals.
Venkat Chalasani, Chief Executive of AMFI, noted, “The combined impacts of GST 2.0, sovereign bond ratings, and price stability have supported this performance, highlighting investors’ growing preference for diversification and safe-haven assets.”
Debt Schemes Record Net Outflows
Debt funds experienced net outflows of over ₹1 lakh crore, mainly due to advance quarterly tax payments. The largest outflows were from:
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Liquid Funds: ₹66,042 crore
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Money Market Funds: ₹17,900 crore
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Ultra-Short Duration Funds: ₹13,606 crore
Conversely, overnight funds and dynamic bond funds saw inflows of ₹4,279 crore and ₹519 crore, respectively.
Equity Schemes See Moderated Growth
Equity-oriented schemes witnessed a 9% decline in net inflows, totaling ₹30,422 crore compared to ₹33,430 crore in August.
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Flexicap Funds: ₹7,029 crore inflows
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Mid-Cap Funds: ₹5,085 crore inflows
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Small-Cap Funds: ₹4,363 crore inflows
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Sectoral Funds: ₹1,221 crore (down 69% from August)
Dividend yield funds and ELSS were the only equity categories to see outflows this month.
Jatinder Pal Singh, CEO, ITI Mutual Fund, commented, “Equity inflows moderated for the second consecutive month, reflecting portfolio rotation rather than investor retreat. Categories such as value/contra funds (+85%) and focused funds (+22%) continued to attract strong interest.”
Hybrid and Solution-Oriented Schemes
Net inflows into hybrid and solution-oriented schemes declined by 38%, totaling ₹9,683 crore.
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Multi-Asset Allocation Funds: ₹4,982 crore inflows (up from ₹3,528 crore)
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Equity Savings Schemes: ₹1,747 crore inflows
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Outflows were observed in conservative hybrid and arbitrage funds.
Passive Funds Maintain Momentum
Passive funds recorded a 67% growth in net inflows, with gold ETFs leading the charge. Other ETFs also witnessed inflows of ₹8,151 crore, up from ₹7,244 crore in August.
Suranjana Borthakur, Head of Distribution & Strategic Alliances, Mirae Asset Investment Managers, said, “Gold and silver ETFs are seeing sustained interest as investors build allocations for safety and diversification. We expect this trend to continue barring sharp market corrections.”
Source: Cafemutual