In September 2025, the Indian mutual fund industry experienced a mixed performance, reflecting both investor optimism and caution across different asset classes. The assets under management (AUM) grew modestly despite facing the steepest net outflows since this fiscal year.
The total AUM rose to Rs 75.61 lakh crore, up from Rs 75.18 lakh crore in August — a 0.57% month-on-month increase, according to a press release by ICRA Analytics.
This growth is primarily driven by exceptional inflows to the tune of Rs 8,363 crore in Gold ETFs in Sep-25 and sustained inflows into equity mutual funds, which added Rs 30,422 crore during the month. Equity AUM itself rose by 1.8%, reaching Rs 33.7 lakh crore.
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Categories like flexi-cap, mid-cap, and small-cap funds continued to attract investor interest, supported by strong SIP contributions, which hit a record Rs 29,361 crore.
However, the overall mutual fund flow turned negative due to massive redemptions in debt funds, which saw outflows of Rs 1.02 lakh crore. Liquid funds alone accounted for Rs 66,042 crore in withdrawals, likely due to quarter-end liquidity needs and festive spending.
Despite these outflows, the industry’s AUM growth reflects resilience and investor confidence, especially in equity and passive segments like ETFs and Gold ETFs, which saw robust inflows.
During the month, Gold ETFs in India delivered an exceptional performance, emerging as one of the most favored investment avenues amid global economic uncertainty. Investors poured in a record Rs 8,363 crore into Gold ETFs — a massive jump from the previous month and a 578% increase compared to September 2024. This surge marked the highest-ever monthly inflow for the category, reflecting a strong shift in investor sentiment toward safe-haven assets.
The total assets under management (AUM) for Gold ETFs rose by 24.33% month-on-month to Rs 90,136 crore, and more than doubled year-on-year. This growth was driven by factors such as rising domestic gold prices (which crossed Rs 1 lakh per 10 grams), expectations of interest rate cuts by the U.S. Federal Reserve, a weakening rupee, and heightened geopolitical tensions. Additionally, the convenience and transparency of digital gold investments over physical gold contributed to the rising popularity of ETFs.
Equity mutual funds continued to attract strong inflows, with Rs 30,422 crore added during the month. This was driven by sustained interest in categories like value fund, focused funds and large & midcap funds. Despite a slight dip compared to August, the overall equity assets under management (AUM) rose to Rs 33.68 lakh crore, indicating continued investor confidence in the stock market.
On the other hand, debt mutual funds witnessed significant outflows amounting to Rs 1.02 lakh crore, the steepest decline since the start of this fiscal year. Liquid funds, money market funds, and ultra-short duration funds were the most affected, likely due to quarter-end withdrawals by corporates and institutions. A few categories like overnight and dynamic bond funds did see modest inflows, but they were not enough to offset the broader trend.
Hybrid funds saw reduced inflows at Rs 9,397 crore, down 39% from August. Multi-asset allocation and aggressive hybrid funds remained popular, though the overall sentiment was more subdued. Passive funds, especially ETFs, performed well with Rs 19,057 crore in net inflows.
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Notably, SIP (Systematic Investment Plan) contributions reached an all-time high of Rs 29,361 crore, underscoring the growing discipline and long-term commitment of retail investors.
The growth in SIP contributions in September 2025 reflects a strong and steady rise in retail investor participation in mutual funds. SIPs are a disciplined way for individuals to invest fixed amounts regularly, typically in equity mutual funds, and their increasing popularity signals growing financial awareness and trust in long-term wealth creation through markets, the release said.
In September, SIP inflows reached an all-time high of Rs 29,361 crore, marking a 4% increase over August. This surge is part of a consistent upward trend seen over the past few years, driven by several factors.
The factors include, firstly despite market volatility, investors are staying committed to SIPs, indicating a shift from short-term speculation to long-term investing. Secondly, easier access to investment platforms and mobile apps has made SIP registration and tracking more convenient.
Thirdly, AMCs and financial influencers have played a key role in educating the public about the benefits of SIPs. And lastly, strong returns from equity mutual funds over the past few years have encouraged more people to start or increase their SIP amounts.
This growth in SIP contributions is a healthy sign for the mutual fund industry, as it provides a stable and predictable inflow of funds, helping fund managers plan better and reduce reliance on volatile lump-sum investments.
The total AUM rose to Rs 75.61 lakh crore, up from Rs 75.18 lakh crore in August — a 0.57% month-on-month increase, according to a press release by ICRA Analytics.
This growth is primarily driven by exceptional inflows to the tune of Rs 8,363 crore in Gold ETFs in Sep-25 and sustained inflows into equity mutual funds, which added Rs 30,422 crore during the month. Equity AUM itself rose by 1.8%, reaching Rs 33.7 lakh crore.
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Also Read | Gold ETFs offer over 53% return in 2025 so far. Time to book profits or stay invested?
Categories like flexi-cap, mid-cap, and small-cap funds continued to attract investor interest, supported by strong SIP contributions, which hit a record Rs 29,361 crore.
However, the overall mutual fund flow turned negative due to massive redemptions in debt funds, which saw outflows of Rs 1.02 lakh crore. Liquid funds alone accounted for Rs 66,042 crore in withdrawals, likely due to quarter-end liquidity needs and festive spending.
Despite these outflows, the industry’s AUM growth reflects resilience and investor confidence, especially in equity and passive segments like ETFs and Gold ETFs, which saw robust inflows.
During the month, Gold ETFs in India delivered an exceptional performance, emerging as one of the most favored investment avenues amid global economic uncertainty. Investors poured in a record Rs 8,363 crore into Gold ETFs — a massive jump from the previous month and a 578% increase compared to September 2024. This surge marked the highest-ever monthly inflow for the category, reflecting a strong shift in investor sentiment toward safe-haven assets.
The total assets under management (AUM) for Gold ETFs rose by 24.33% month-on-month to Rs 90,136 crore, and more than doubled year-on-year. This growth was driven by factors such as rising domestic gold prices (which crossed Rs 1 lakh per 10 grams), expectations of interest rate cuts by the U.S. Federal Reserve, a weakening rupee, and heightened geopolitical tensions. Additionally, the convenience and transparency of digital gold investments over physical gold contributed to the rising popularity of ETFs.
Equity mutual funds continued to attract strong inflows, with Rs 30,422 crore added during the month. This was driven by sustained interest in categories like value fund, focused funds and large & midcap funds. Despite a slight dip compared to August, the overall equity assets under management (AUM) rose to Rs 33.68 lakh crore, indicating continued investor confidence in the stock market.
On the other hand, debt mutual funds witnessed significant outflows amounting to Rs 1.02 lakh crore, the steepest decline since the start of this fiscal year. Liquid funds, money market funds, and ultra-short duration funds were the most affected, likely due to quarter-end withdrawals by corporates and institutions. A few categories like overnight and dynamic bond funds did see modest inflows, but they were not enough to offset the broader trend.
Hybrid funds saw reduced inflows at Rs 9,397 crore, down 39% from August. Multi-asset allocation and aggressive hybrid funds remained popular, though the overall sentiment was more subdued. Passive funds, especially ETFs, performed well with Rs 19,057 crore in net inflows.
Also Read | Bitcoin tumbles below $109K, global crypto market cap slips under $4 trillion post Fed cut
Notably, SIP (Systematic Investment Plan) contributions reached an all-time high of Rs 29,361 crore, underscoring the growing discipline and long-term commitment of retail investors.
The growth in SIP contributions in September 2025 reflects a strong and steady rise in retail investor participation in mutual funds. SIPs are a disciplined way for individuals to invest fixed amounts regularly, typically in equity mutual funds, and their increasing popularity signals growing financial awareness and trust in long-term wealth creation through markets, the release said.
In September, SIP inflows reached an all-time high of Rs 29,361 crore, marking a 4% increase over August. This surge is part of a consistent upward trend seen over the past few years, driven by several factors.
The factors include, firstly despite market volatility, investors are staying committed to SIPs, indicating a shift from short-term speculation to long-term investing. Secondly, easier access to investment platforms and mobile apps has made SIP registration and tracking more convenient.
Thirdly, AMCs and financial influencers have played a key role in educating the public about the benefits of SIPs. And lastly, strong returns from equity mutual funds over the past few years have encouraged more people to start or increase their SIP amounts.
This growth in SIP contributions is a healthy sign for the mutual fund industry, as it provides a stable and predictable inflow of funds, helping fund managers plan better and reduce reliance on volatile lump-sum investments.
