MUMBAI: Despite a steep 19% on-month fall in inflows into equity mutual funds to Rs 24,690 crore in October, from Rs 30,422 crore in September, the mutual funds industry as a whole grew robustly with the assets under management jumping to Rs 79.87 trillion in the reporting month from Rs 75.61 trillion in the previous month.
Though investors continued to pour money into equity mutual funds at a slower pace in October, and net equity inflows fell by 19% to Rs 24,690 crore from Rs 30,422 crore in September, the total equity AUM rose to Rs 35.16 trillion from Rs 33.7 trillion in the previous month, Amfi said on Tuesday.
Meanwhile, SIPs continued to sizzle with inflows touching a new high of Rs 29,529 crore in October, up marginally from Rs 29,361 crore in the previous month, taking the SIP assets under management at Rs 16.25 trillion, representing about 20.3% of the overall mutual fund industry AUM.
Another positive is that the stoppage ratio improved to 75, lower than 76.3 in September.
The stoppage ratio measures the percentage of investors pausing or stopping their systematic investment plan contributions or whose plan tenures have matured, has seen significant fluctuations over the past two years.
For much of 2024, the ratio stayed between 50 and 60, indicating moderate SIP cancellations. However, in early 2025, the ratio spiked sharply, reaching 109 in January and peaking at 296% in April.
A ratio above 100% means that more SIPs were stopped in that month than new SIPs started, signalling a period of unusually high investor caution, possibly due to market volatility or personal liquidity needs.
After April, the ratio has gradually normalised, stabilising around 56–76 from June to September 2025.In terms of accounts, contributing SIPs rose to 9.45 crore, up from 9.25 crore in the prior month and the total number of SIP accounts rose to 9.88 crore from 9.73 crore, following net additions of around 60 lakh accounts and closures of about 45 lakh.
In terms of accounts, contributing SIPs rose to 9.45 crore, up from 9.25 crore in the prior month.
Meanwhile, the total number of SIP accounts in the system stands at 9.88 crore, up from 9.73 crore, following net additions of approximately 60 lakh accounts and closures of about 45 lakh.
On the continuing SIP numbers, Suranjana Borthakur of Mirae Asset Investment Managers said what remains most encouraging is the continued strength of SIP inflows.
"This underlines the maturity and resilience of retail investors, who are staying disciplined with their long-term wealth creation goals despite short-term market fluctuations. We believe investors should continue their SIPs, as staying invested through market cycles remains the best way to build wealth over time," she said.
Given the gold price rally in the month when it sniffed at USD 4,400/ounce inflows into gold ETFs declined to Rs 7,743 crore in October from Rs 8,363 crore in September and Rs 2,190 crore in August.
Retail participation strengthened, with total mutual fund folios rising to 25.60 crore. The month also saw 18 schemes getting launched, all open-ended and across categories, raising a total of Rs 6,062 crore.
Sectorally, there was a slowdown in inflows across most categories, with small-cap funds registering inflows down to Rs 3,476 crore from Rs 4,363 crore, while mid-cap funds saw a sharper dip to Rs 3,807 crore from Rs 5,085 crore.
Flexi-cap funds, however, bucked the trend with inflows rising to Rs 8,929 crore, up from Rs 7,029 crore, emerging as the top category for the month. Large-cap funds saw a steep decline to Rs 972 crore, while ELSS funds and dividend yield funds saw net outflows of Rs 666 crore and Rs 179 crore, respectively.
However, overall, equity inflows remained positive, indicating sustained retail participation, though investors appeared more selective amid market volatility and valuations. Debt-oriented funds saw a strong rebound, recording net inflows of Rs 1.59 trillion, compared to an outflow of Rs 1.01 trillion in September.
The surge was primarily led by liquid funds, which saw inflows of Rs 89,375 crore, as corporates and institutions redeployed short-term surplus funds after the end of the quarter. Money market funds followed with inflows of Rs 17,916 crore, while ultra-short duration funds and overnight funds attracted Rs 15,067 crore and Rs 24,051 crore, respectively.
Most other categories, including corporate bond and low-duration funds, also saw positive flows. However, gilt, dynamic bond, and floater funds continued to witness minor outflows.
Gold ETFs continued to attract strong investor interest, recording net inflows of Rs 7,743 crore, slightly lower than Rs 8,363 crore in September.
This marks the seventh consecutive month of positive flows, reflecting sustained investor preference for gold amid global economic uncertainty and geopolitical tensions.
Inflows into gold ETFs have risen sharply since April, when the category saw marginal outflows, supported by rising gold prices and its appeal as a safe-haven asset.
The steady demand marks investors’ shift towards portfolio diversification and inflation hedging through gold-backed instruments.