The Indian mutual fund industry maintained its growth momentum in September, with total assets under management (AUM) climbing to ₹75.61 lakh crore from ₹75.18 lakh crore in August. According to data released by the Association of Mutual Funds in India (AMFI), this growth demonstrates continued investor confidence in mutual funds despite a mixed market environment.
While the overall AUM showed resilience, the pace of net inflows into equity funds moderated for the second consecutive month. Net inflows eased from ₹33,417 crore in August to ₹30,405 crore in September, a decline of about 9%. This slowdown was observed across all market-capitalization segments. Large-cap funds saw an 18% drop in inflows, mid-caps were down 4.6%, and small-caps declined by 12.6%. Despite the moderation, equity funds have now witnessed positive inflows for the 55th consecutive month.
The growth in the industry was primarily fueled by retail investors through Systematic Investment Plans (SIPs). SIP inflows into mutual funds grew by 4% to reach a record ₹29,361 crore in September. The number of contributing SIP accounts also reached a new milestone, totaling 9.25 crore. This steady flow of SIP investments highlights the growing preference among retail investors for a disciplined and systematic approach to long-term wealth creation. The industry also crossed another major milestone, with the total number of accounts, or folios, surpassing 25 crore for the first time.
Speaking on the data, AMFI Chief Executive Venkat Chalasani said: “The mutual fund industry maintained its growth momentum in September, with total assets rising to ₹75.61 lakh crore despite temporary outflows linked to advance tax payments. Equity funds witnessed positive inflows for the 55th consecutive month, reflecting investors’ confidence in equities as a long-term asset class. SIPs reached a new milestone with record monthly contribution of ₹29,361 crore and 9.25 crore active accounts, reaffirming retail investors’ growing preference for disciplined and systematic investing.” He added that the addition of over 30 lakh new folios “underscores the widening reach and trust in mutual funds as a key vehicle for wealth creation”.
The data from September also highlighted a notable shift in investor preferences. Kartik Jain, MD & CEO, Shriram AMC, commented that the data reveals a “steady yet insightful shift in investor preferences.” He further added, “The mutual fund industry added 40 lakh folios in the month, with total AUM inching up from ₹75.18 lakh crore to ₹75.38 lakh crore, reflecting continued investor engagement. Systematic Investment Plan inflows remain robust, signalling confidence in disciplined, long-term wealth creation.”
Jain also emphasized the increasing role of precious metals in portfolio diversification. He said, “The September data underscores the increasing role of precious metals in long-term wealth diversification. For investors, it’s a reminder that balancing traditional equity and debt hybrid strategies along with strategic asset allocation to metals can strengthen portfolios against economic uncertainties, while tapping into avenues for long term growth.” Gold ETFs, for instance, saw record inflows of ₹8,363 crore in September. This trend suggests that while investors maintain confidence in equities, they are also seeking safer assets to hedge against market volatility and geopolitical risks.
