Marking the second straight month of decline, inflows into equity mutual funds fell sharply in October 2025. According to data released by the Association of Mutual Funds in India (AMFI), equity funds saw net inflows of Rs 24,690 crore, down nearly 19% from Rs 30,421 crore in September 2025.
This comes after a 22% month-on-month drop in August 2025, indicating that investor enthusiasm for equities has moderated in recent months.
However, the broader mutual fund industry saw a turnaround in October. Total net inflows across all fund categories jumped significantly, driven mainly by strong inflows into liquid funds. Liquid funds received inflows of Rs 89,375 crore in October, against outflows of Rs 66,042 crore in the previous month.
Overall, the mutual fund industry has reported net inflows of over Rs 2,15,656 lakh crore in October, compared to net outflows of Rs 43,146 crore in September 2025.
Net assets under management of the Indian mutual fund industry as on October 31 stood at Rs 79,87,939.94 crore against Rs 75,61,309.29 crore in the previous month – a jump of 5.64% m-o-m.
Month-on-month comparison of inflows/outflows in equity subcategories
Flexi cap funds continued to be investors’ top choice in October, recording the highest inflow among all equity mutual fund categories. According to AMFI data, flexi cap funds saw inflows of Rs 8,928.71 crore, up from Rs 7,029.26 crore in September — a sharp month-on-month rise.
Among other categories, mid cap funds collected Rs 3,807.11 crore in October, lower than Rs 5,085.40 crore in September. Similarly, small cap funds witnessed inflows of Rs 3,476.04 crore, down from Rs 4,362.91 crore the previous month.
Large and mid cap funds saw inflows of Rs 3,177.07 crore, compared to Rs 3,805.17 crore in September. Multi cap funds too reported lower inflows at Rs 2,500.43 crore, against Rs 3,559.57 crore a month ago.
Large cap funds log sharper fall in inflows
In contrast, large cap funds registered a sharper decline, with inflows dropping to Rs 971.97 crore from Rs 2,319.04 crore in September.
On the other hand, sectoral/thematic funds saw a slight rise in inflows at Rs 1,366.16 crore, compared to Rs 1,220.89 crore earlier. Focused funds collected Rs 939.06 crore, down from Rs 1,407.23 crore.
Value/Contra funds saw a steep fall in investor interest, with inflows dropping to Rs 368.39 crore from Rs 2,107.93 crore.
Dividend yield funds and ELSS schemes again log outflows
Meanwhile, dividend yield funds and ELSS schemes continued to see outflows. Dividend yield funds recorded an outflow of Rs 178.96 crore, slightly higher than Rs 167.78 crore in September, while ELSS funds saw outflows widen to Rs 665.66 crore from Rs 307.92 crore a month earlier.
Income/debt-oriented schemes see massive revival in October
Liquid funds attracted inflows of Rs 89,375.12 crore in the month under review against Rs 66,042.32 crore outflows in September 2025.
Ultra Short Duration Fund and Money Market Fund emerged as other top gainers. Both these debt subcategories logged heavy fund inflows at Rs 15,066.64 crore and 17,916.44 crore, respectively in October. Both these subcategories witnessed outflows of Rs 13,605.66 crore and Rs 17,899.90 crore, respectively in the previous month.
Long Duration Fund and Dynamic Bond Fund, however, logged outflows in October against inflows in the previous month. Long Duration Fund saw an outflow of Rs 942.71 crore in October, while Dynamic Bond Fund witnessed Rs 232.69 crore outflow in the month.
Of the 16 sub-categories under the income/debt-oriented schemes, 10 sub-categories logged inflows in October against just 4 in the previous month.
Overall, income/debt-oriented schemes saw inflows to the tune of Rs 1,59,957.96 crore against outflows at 1,01,977.26 crore in the previous month, due to massive investments in liquid funds.
Commenting on the latest AMFI data, Ankur Punj, MD – Business Head Equirus Wealth, says, “AMFI’s October 2025 data shows a marked shift in MF flows. Inflows in debt funds saw robust growth as the investors look for lower risk options for stability. Debt MF saw strong inflows of 1.59 lakh crore, while equity MF inflows declined sharply to Rs 24,690 crore. We are seeing declining inflows to equity funds since August. This is driven by multiple factors like profit booking, cautious investor sentiment due to global policy uncertainties and tariff overhang. Investors are looking at safer options like debt and hybrid funds.”
Systematic investment plan (SIP) inflows, however, continued to perform well. SIP inflows rose marginally during the month but to an all-time high of Rs 29,529 crore. In the previous month, SIP inflows stood at Rs 29,361 crore.