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Summary: According to AMFI’s September 2025 disclosures, equity and hybrid mutual fund schemes have seen a decline in net flows for the third straight month, while gold and silver ETFs saw a sharp surge.
Mutual fund inflows slipped again in September, marking the third consecutive month of decline.
As per data from AMFI (Association of Mutual Funds in India), equity-oriented schemes saw net flows of Rs 30,421 crore in September, down from Rs 33,430 crore in August and Rs 42,702 crore in July.
Despite the slump, September marks the 55th consecutive month of positive equity flows since March 2021. Further, SIPs (systematic investment plans) remained steady during the month, with monthly contributions increasing to Rs 29,361 crore, indicating investor discipline despite market uncertainty.
Hybrid schemes also witnessed signs of fatigue. After peaking in June and July, inflows have gradually eased, from Rs 20,879 crore in July and Rs 15,294 crore in August to just Rs 9,397 crore in September. While balanced advantage and multi-asset funds continue to attract money, the tapering suggests that investors are becoming more cautious when it comes to allocating fresh capital.
Why the steady inflow decline?
The fall in inflows into equity and hybrid funds could be attributed to the market’s muted performance.
Though the market rebounded sharply last week, its short-term (one-year) returns remain largely subdued. While the BSE Sensex has gained only 1.33 per cent over the past year, the BSE Midcap and BSE Smallcap indices are still down about 4 per cent and 5 per cent, respectively.
Metals continue to shine
As equity and hybrid funds see moderation in inflows, gold and silver ETFs (exchange-traded funds) are having their moment.
While gold ETFs saw record inflows of Rs 8,363 crore in September, silver ETFs reported net inflows of Rs 5,341 crore, marking a surge in investor appetite for precious metal-linked investments.
Their recent performance hasn’t disappointed, either. In the past year, average gold funds are up by 61.5 per cent, while silver funds have gained 77 per cent.
While returns are one factor, growing uncertainty has also driven the sharp spike in their inflows. According to Anand Vardarajan, Chief Business Officer, Tata Asset Management, “Precious metals, particularly gold and silver, have performed very well in the last couple of months. This surge was largely driven by strong performance as well as investors seeking safety and diversification. In the same vein, multi-asset funds saw strong flows within the hybrid category.”
Debt funds see high outflows
On the debt side, the industry recorded outflows exceeding Rs 1 lakh crore, primarily driven by liquid and money market funds as institutions withdrew investments to meet their quarter-end requirements. While cyclical, it reiterates that debt flows remain dominated by short-term treasury movements rather than retail participation.
Also read: Equity inflows ease in August as markets turn soft
Disclaimer: This content is for information only and should not be considered investment advice or a recommendation.
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