MF Industry AUM nears Rs 80 lk cr in Oct; Passive & Flexi-Cap funds continue to attract

The mutual fund industry’s assets under management (AUM) climbed close to Rs 80 lakh crore in October, with passive and flexi-cap funds continuing to draw strong investor interest.

According to the latest data from the Association of Mutual Funds in India (AMFI), passive investing in India maintained its steady rise. Between September and October 2025, the AUM of passive funds increased to Rs 13.67 lakh crore from Rs 12.99 lakh crore, marking a month-on-month growth of more than 5%.

Hemen Bhatia, Executive Director and CEO, Angel One Asset Management Company, said, “This momentum shows an inclination in investor preference towards transparent and cost-efficient investment options. As more investors adopt passive strategies for long-term wealth creation, this trend will continue to play an important role in expanding overall market participation.”

Overall, the mutual fund industry recorded a strong October, with total AUM rising 5.63% month-on-month to Rs 79.87 lakh crore. The increase was driven by a 4% market-led mark-to-market (MTM) gain alongside steady net inflows. Debt AUM rebounded meaningfully to Rs 1.60 lakh crore, reflecting renewed confidence in short-duration and liquid strategies as rate expectations stabilise.

Equity and hybrid active categories saw net inflows of Rs 0.40 lakh crore, while gold funds continued to attract tactical allocations with an additional Rs 6,000 crore, supported by improving global sentiment. New Fund Offers (NFOs) contributed nearly Rs 6,062 crore in October, compared with Rs 1,959 crore in the previous month, signalling stronger investor appetite for new product strategies.

Among other major categories, liquid funds recorded over Rs 92,000 crore in inflows, while money market funds added Rs 17,000 crore, underscoring the continued preference for liquidity and lower duration risk.

Commenting on the surge in new folios and SIP registrations, Kartik Jain, MD & CEO, Shriram AMC, said, “The addition of 40 lakh new folios and over 40% year-on-year jump in new SIP registrations to Rs 29,529 crore highlight growing investor discipline and broad-based retail participation. Flexi Cap, Arbitrage, and Multi Asset Allocation funds emerged as the top gainers among equity inflows.”

The AUM of flexi-cap funds witnessed a 5% increase to Rs 5.34 lakh crore, outpacing other major categories in growth among equity-oriented schemes.

In an interaction with Business Today, Rajat Chandak, Senior Fund Manager, ICICI Prudential AMC, said, “Flexi-cap funds have become the largest actively managed equity category, reflecting the strong confidence investors have built in them over recent years. Despite carrying a slightly higher risk than large-cap funds owing to their exposure to mid and small caps, these schemes have delivered an encouraging investor experience.”

What makes them particularly appealing in volatile markets is their built-in flexibility. Chandak explained that a fund manager can move across market capitalisations and adjust exposures based on where opportunities emerge. “This ability to balance stability from large caps with higher growth potential from mid and small caps allows flexi-cap funds to navigate market cycles effectively and aim for consistent long-term outcomes,” he added.