Equity Mutual Fund Inflows Drop 22% in August to ₹33,403 Crore: AMFI Data
- 11th September 2025
- 03:45:00 PM
- 3 min read
Summary
Inflows into equity mutual funds declined 22% month-on-month to ₹33,403 crore in August 2025, according to AMFI data. While flows eased after July’s record high, SIP contributions remained strong at ₹28,265 crore. PL Capital experts note that investors continue to back equities as the engine of long-term wealth creation despite near-term volatility.
Mumbai | September 11 – Inflows into equity mutual funds moderated in August, slipping 22 per cent month-on-month to ₹33,403 crore, compared with July’s ₹42,702 crore, the latest data from the Association of Mutual Funds in India (AMFI) showed. The decline comes after record inflows in July, as investors turned cautious amid market volatility.
Despite the month-on-month dip, industry participants stress that the numbers remain robust, reflecting the continued depth of retail participation and the structural preference for equities as a long-term asset class.
“In August 2025, even with heightened volatility, equity mutual funds attracted a net inflow of over ₹33,400 crore — a clear reflection of investor confidence in India’s growth story,” said Pankaj Shrestha, Head – Investment Services at PL Capital.
SIP Flows Hold Ground
Systematic investment plans (SIPs) continued to provide steady support to equity flows. In August, SIP inflows stood at ₹28,265 crore, only marginally lower than July’s record ₹28,464 crore. The SIP assets under management (AUM) rose to ₹15.18 lakh crore, while the number of active SIP accounts was reported at 8.99 crore, compared with 9.11 crore a month earlier.
The marginal decline in SIP accounts is seen as part of routine churn, with the overall trend reflecting the growing reliance of Indian households on mutual funds as a disciplined wealth-creation vehicle.
Fund Category Trends
Equity inflows were uneven across categories. Small-cap funds saw the sharpest moderation, with net inflows falling 23 per cent to ₹4,993 crore from ₹6,484 crore in July. Mid-cap funds, however, posted a 3 per cent increase to ₹5,331 crore, while large-cap funds recorded a 33 per cent rise at ₹2,835 crore, signalling renewed confidence in frontline stocks.
Flows into sectoral and thematic funds slowed significantly to ₹3,893 crore, down 59 per cent from July’s ₹9,426 crore.
On the debt side, mutual funds reported net outflows of ₹7,980 crore in August, reversing July’s inflows of over ₹1 trillion. Liquid funds witnessed the sharpest withdrawals at ₹13,350 crore, while overnight funds absorbed ₹4,951 crore. Hybrid schemes also recorded lower inflows at ₹15,294 crore, against ₹20,879 crore in July.
Meanwhile, gold exchange-traded funds (ETFs) gained further traction, with inflows nearly doubling month-on-month to ₹2,190 crore, compared with ₹1,256 crore in July.
Assets Under Management
The total mutual fund industry AUM stood at ₹75.19 lakh crore in August, marginally lower than ₹75.36 lakh crore in July. Industry experts note that the moderation in AUM and flows should be seen in context: July marked historic highs, and August’s performance, while lower sequentially, still underscores strong domestic investor participation.
Shrestha of PL Capital observed that the resilience of flows highlights the growing maturity of India’s investor base. “The steady SIP momentum and continued allocations to large- and mid-cap funds show that investors are not retreating. They are balancing short-term volatility with confidence in India’s long-term growth trajectory,” he said.
Outlook
Market participants expect equity flows to remain steady, supported by household savings moving into financial assets, policy stability, and the growing penetration of systematic investing. While near-term volatility may affect month-to-month data, the underlying trend of rising retail participation is unlikely to reverse.
For investors, the message is clear: SIP flows remain the backbone of mutual fund inflows, cushioning short-term shocks and reinforcing equities as the primary driver of long-term wealth creation.
PL Capital
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
