Equity mutual funds saw a 22% drop in net inflows at Rs 33,430 crore in August 2025 from Rs 42,702 crore in the previous month, according to data released by the Association of Mutual Funds in India (AMFI) on September 10.
In the previous month, equity mutual funds registered a remarkable 81% growth in inflows at Rs 42,702 crore compared to Rs 23,587 crore in June.
Despite the decline (month-on-month), this was the 54th consecutive month of positive equity flows in August 2025.
The mutual fund industry’s overall assets under management (AUM) fell marginally to Rs 75.18 crore from Rs 75.35 lakh crore in July and Rs 74.41 lakh crore in June.
Sub-categories performance: Flexi-cap, large-cap, mid-cap funds register growth m-o-m
Of the 11 sub-categories, flexi-cap funds saw the maximum inflows at Rs 7,679.40 crore in August, slightly better than the previous month’s Rs 7,654 crore.
In terms of percentage growth, large-cap funds saw massive 33% inflows at Rs 2,835 crore for the month under review against Rs 2,125 crore received in the previous month.
Mid-cap funds also saw an increase in inflows at Rs 5,330 crore in August against Rs 5,182 crore in July 2025.
So barring flexi-cap, large-cap and mid-cap funds, all other sub-categories witnessed a fall in inflows compared with the previous month.
Inflows into small-cap funds dropped 23% to Rs 4,993 crore in August from Rs 6,484 crore in July.
Debt mutual funds log outflows in August
Debt mutual funds logged an outflow of Rs 7,979 crore in August. In the previous month, the category saw an inflow of Rs 1.06 lakh crore. Among the 16 sub-categories, most debt mutual fund categories registered outflows except for overnight funds, ultra short duration funds, low duration, money market, short duration, medium duration, and gilt fund with 10-year constant duration.
Total number of mutual fund folios stood at 24,89,09,424 as of August 31, 2025 against 24,57,24,339 for July 2025.
SIP (systematic investment plan) contribution for August 2025 stood at Rs 28,264.95 crore against Rs 28,464 crore for the month of July.
The number of contributing SIP accounts stood at 8,98,70,085 crore in August 2025.
Commenting on SIP data, Venkat N Chalasani, Chief Executive, AMFI, said: “SIPs too remained a consistent driver of retail participation, contributing Rs 28,265 crore during the month, with SIP AUM now at over Rs 15.18 lakh crore and 8.99 crore contributing accounts.”
“The resilience in August flows can largely be attributed to sustained momentum through Systematic Investment Plans (SIPs), which continued to see strong monthly contributions. Retail investors, in particular, remained consistent in their allocations, undeterred by global volatility,” says Himanshu Srivastava – Associate Director- Manager Research, Morningstar Investment Research India.
Additionally, growing optimism around India’s economic outlook, aided by reforms such as GST rationalisation and expectations of corporate earnings recovery, further supported domestic equity flows, he adds.
Market volatility and intermittent corrections created attractive entry points for investors, encouraging fresh investments during the month, Srivastava noted.
A total of 23 schemes were launched in the month of August 2025, all open-ended and across categories, raising a total of Rs 2,859 crore.