India’s mutual fund industry remains resilient, even amid short-term net outflows of about Rs43,146 crore
FinTech BizNews Service
Mumbai, October 10, 2025: Association of Mutual Funds in India (AMFI) has on Wednesday released Mutual Fund Industry Monthly Data for September 2025.
Here are perspectives of experts from MF houses on this monthly data.
Suranjana Borthakur, Head of Distribution & Strategic Alliances, Mirae Asset Investment Managers (India)
“We have seen slight drop in September equity flow to around Rs 30,400 crore. If we break it down by category, FlexiCap continues to see strong inflows of about Rs 7,000 crore, while large caps remain consistent at around Rs 2,300 crore. Mid-cap and small-cap segments have seen minimal changes, with mid-caps at about Rs 5,000 crore and small-caps around Rs 4,300 crore. One area showing upside is the value-Contra segment, rising from an average of Rs 1,000 crore in recent months to about Rs 2,100 crore. Overall, there is no reason for concern.
Hybrid inflows have been impacted slightly led by outflow in arbitrage segment. The equity savings category has seen an upside in flows within hybrid. Passive ETFs have also seen growth, with gold ETFs maintaining momentum and other ETFs rising from about Rs 1,500 crore last month to more than Rs 8000 crore now. Silver ETFs are catching attention too, as some investors are building allocations while others are chasing returns. We see interest in gold and silver continuing to persist unless there is a sharp correction.”
Dr. Vikas Gupta, CEO & Chief Investment Strategist at OmniScience Capital:
“Mr. Market, i.e., the majority of retail investors, again demonstrates the recency bias. This behavioural error seems rewarding in the short term and punishes the portfolios in the long run. The most striking data point is that the highest inflows of more than INR 8000 crores, more than 10% of previous month’s AUM, went to Gold ETFs. This is exactly in parallel with Gold having delivered more than 10% returns in a single month and nearly 60% for the year. The nearly INR 5000 crores inflow into Multi-asset funds is also probably with the hope of getting a more balanced exposure to gold where the investor is unsure of betting exclusively on gold. While significant equity inflows continue, the concern is that they continue going to midcaps and smallcaps and to a very little extent to large caps. This bias towards sectoral funds, and smaller caps could be creating overvaluation in the popular names in mid and smallcaps. Within smallcaps, of course, the pool is very large so there could be pockets of mispricing in this segment. Similarly, certain popular sectors and themes could be significantly overvalued and investors would do well to stay away from them as compared to less popular but promising themes which are significantly undervalued where ideally investors should be allocating.”
Robin Arya, Investment Manager On Smallcase And Founder at GoalFi:
The September 2025 AMFI data highlights how resilient India’s mutual fund industry remains, even amid short-term net outflows of about Rs43,146 crore. Equity-oriented schemes continued to show robust investor confidence, contributing over Rs30,000 crore in net inflows, while open-ended debt funds saw expected cyclical withdrawals. With over 25 crore folios, we’re witnessing deep retail penetration that’s becoming structurally sustainable. At GoalFi, we see this as a validation of investors embracing disciplined, goal-based investing. The steady rise of index funds, ETFs, and hybrid products including Rs1,959 crore mobilized through new launches in September also reflects growing financial maturity and product awareness. India’s wealth creation story is clearly moving from speculative to systematic.
