Mutual funds: Inflows in equity funds drop 22% to Rs 33,430 cr in August, shows AMFI data
According to data from AMFI released on September 10, net equity inflows for August fell 22% compared to July, but this still marks the 54th consecutive month of positive equity flows, reflecting sustained investor interest.
- Sep 10, 2025,
- Updated Sep 10, 2025 4:37 PM IST
Equity mutual fund inflows moderated in August 2025, totaling Rs 33,430 crore, down 22% from Rs 42,702 crore in July. Inflows for August 2024 had stood at Rs 38,239 crore, highlighting a steady, though slightly slower, pace of equity accumulation. Among the 11 equity sub-categories, flexi-cap funds led the charge with Rs 7,679 crore, followed by mid-cap funds at Rs 5,330 crore and small-cap funds at Rs 4,992 crore.
According to AMFI data released on September 10, August marked the 54th consecutive month of positive equity inflows, reflecting sustained investor confidence in Indian equities. Despite the moderation in monthly flows, the industry’s overall assets under management (AUM) remained largely stable at Rs 75.18 lakh crore, slightly down from Rs 75.35 lakh crore in July and Rs 74.41 lakh crore in June, supported by mark-to-market gains in equities.
In August, the mutual fund industry launched 23 new open-ended schemes across categories, raising Rs 2,859 crore, compared to 30 schemes raising Rs 30,416 crore in July.
Commenting on the trend, Akhil Chaturvedi, Executive Director and Chief Business Officer at Motilal Oswal AMC, said: "The lower inflows compared to July, roughly Rs 9,000 crore, are primarily due to fewer NFOs last month. Flow momentum remains steady and healthy. SIP contributions have stabilized around Rs 27,000 crore, reflecting consistent participation from Indian investors despite global headwinds and FII selling. Broadly, domestic equity allocations continue to grow, which is very positive for the markets."
Mid-cap funds maintained robust inflows at Rs 5,330 crore, up slightly from Rs 5,182 crore in July. However, apart from flexi-cap, large-cap, and mid-cap funds, most other equity sub-categories recorded lower inflows. Small-cap funds witnessed a 23% decline, drawing Rs 4,993 crore compared to Rs 6,484 crore in July. Sectoral and thematic funds, which had seen record inflows of Rs 9,246 crore in July, moderated sharply to Rs 3,893 crore in August, partly due to profit booking and cautious investor sentiment.
"Equity inflows moderated from Rs 42,000 crore to Rs 33,000 crore, largely due to last month’s NFO-driven surge. Hybrid inflows eased from Rs 20,000 crore to Rs 15,000 crore as arbitrage funds cooled. SIP contributions remain steady, signaling healthy investor participation. Mid- and small-cap funds continued to attract over Rs 10,000 crore for two months, while flexi-cap and multi-cap funds remain preferred for long-term allocations, with flexi-caps seeing consistent inflows of around Rs 7,600 crore," Suranjana Borthakhur, Head of Distribution & Strategic Alliances, Mirae Asset Investment Managers (India), said.
Debt and Hybrid Fund trends
Debt mutual funds saw net outflows of Rs 7,980 crore in August, a sharp drop from Rs 1,06,801 crore in July. Hybrid funds also recorded slower inflows, falling to Rs 15,293 crore from Rs 20,879 crore. Within debt categories, most segments posted outflows except for overnight funds, ultra-short duration, low duration, money market, short duration, medium duration, and gilt funds with 10-year constant duration.
Himanshu Srivastava, Associate Director – Manager Research at Morningstar Investment Research India, noted: "Equity-oriented mutual fund categories witnessed robust inflows, underscoring sustained investor confidence. SIPs continued to drive steady contributions, and domestic optimism—fueled by GST rationalization and expected corporate earnings recovery—supported flows despite global volatility. Flexi-cap funds saw record net inflows of Rs 7,679 crore, while mid- and small-cap funds also attracted healthy investments. The moderation from July reflects exceptionally high prior-month inflows and cautious investor sentiment amid global uncertainties, but overall, domestic equity appetite remains strong and focused on long-term wealth creation."
In summary, while August inflows were lower than July’s record levels, they highlight steady domestic participation, consistent SIP contributions, and long-term investor confidence in Indian equities across categories.
Equity mutual fund inflows moderated in August 2025, totaling Rs 33,430 crore, down 22% from Rs 42,702 crore in July. Inflows for August 2024 had stood at Rs 38,239 crore, highlighting a steady, though slightly slower, pace of equity accumulation. Among the 11 equity sub-categories, flexi-cap funds led the charge with Rs 7,679 crore, followed by mid-cap funds at Rs 5,330 crore and small-cap funds at Rs 4,992 crore.
According to AMFI data released on September 10, August marked the 54th consecutive month of positive equity inflows, reflecting sustained investor confidence in Indian equities. Despite the moderation in monthly flows, the industry’s overall assets under management (AUM) remained largely stable at Rs 75.18 lakh crore, slightly down from Rs 75.35 lakh crore in July and Rs 74.41 lakh crore in June, supported by mark-to-market gains in equities.
In August, the mutual fund industry launched 23 new open-ended schemes across categories, raising Rs 2,859 crore, compared to 30 schemes raising Rs 30,416 crore in July.
Commenting on the trend, Akhil Chaturvedi, Executive Director and Chief Business Officer at Motilal Oswal AMC, said: "The lower inflows compared to July, roughly Rs 9,000 crore, are primarily due to fewer NFOs last month. Flow momentum remains steady and healthy. SIP contributions have stabilized around Rs 27,000 crore, reflecting consistent participation from Indian investors despite global headwinds and FII selling. Broadly, domestic equity allocations continue to grow, which is very positive for the markets."
Mid-cap funds maintained robust inflows at Rs 5,330 crore, up slightly from Rs 5,182 crore in July. However, apart from flexi-cap, large-cap, and mid-cap funds, most other equity sub-categories recorded lower inflows. Small-cap funds witnessed a 23% decline, drawing Rs 4,993 crore compared to Rs 6,484 crore in July. Sectoral and thematic funds, which had seen record inflows of Rs 9,246 crore in July, moderated sharply to Rs 3,893 crore in August, partly due to profit booking and cautious investor sentiment.
"Equity inflows moderated from Rs 42,000 crore to Rs 33,000 crore, largely due to last month’s NFO-driven surge. Hybrid inflows eased from Rs 20,000 crore to Rs 15,000 crore as arbitrage funds cooled. SIP contributions remain steady, signaling healthy investor participation. Mid- and small-cap funds continued to attract over Rs 10,000 crore for two months, while flexi-cap and multi-cap funds remain preferred for long-term allocations, with flexi-caps seeing consistent inflows of around Rs 7,600 crore," Suranjana Borthakhur, Head of Distribution & Strategic Alliances, Mirae Asset Investment Managers (India), said.
Debt and Hybrid Fund trends
Debt mutual funds saw net outflows of Rs 7,980 crore in August, a sharp drop from Rs 1,06,801 crore in July. Hybrid funds also recorded slower inflows, falling to Rs 15,293 crore from Rs 20,879 crore. Within debt categories, most segments posted outflows except for overnight funds, ultra-short duration, low duration, money market, short duration, medium duration, and gilt funds with 10-year constant duration.
Himanshu Srivastava, Associate Director – Manager Research at Morningstar Investment Research India, noted: "Equity-oriented mutual fund categories witnessed robust inflows, underscoring sustained investor confidence. SIPs continued to drive steady contributions, and domestic optimism—fueled by GST rationalization and expected corporate earnings recovery—supported flows despite global volatility. Flexi-cap funds saw record net inflows of Rs 7,679 crore, while mid- and small-cap funds also attracted healthy investments. The moderation from July reflects exceptionally high prior-month inflows and cautious investor sentiment amid global uncertainties, but overall, domestic equity appetite remains strong and focused on long-term wealth creation."
In summary, while August inflows were lower than July’s record levels, they highlight steady domestic participation, consistent SIP contributions, and long-term investor confidence in Indian equities across categories.