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Below the Comment on AMFI Data Reaction by Kartik Jain, MD & CEO, Shriram AMC

The industry's net outflows of approximately Rs.66,500 crore in December 2025 reflect a seasonal rebalancing rather than a shift in investor sentiment driven by debt funds. These outflows were concentrated in short-term debt categories—including liquid, money market, and ultra-short duration funds—aligning with typical Quarter end corporate behaviour for meeting advance tax obligations, finalizing balance sheets, and managing liquidity requirements.

In contrast, equity-oriented schemes remained resilient, registering net inflows of over Rs.28,000 crore. Investor preference continued to tilt towards Flexi Cap, Mid Cap, Small Cap and Large & Mid Cap Funds, indicating sustained risk appetite and confidence in India’s medium to long-term growth outlook despite market volatility.

The strong inflows into Flexi Cap Funds, in particular, suggest investors are increasingly delegating asset allocation decisions to fund managers amid uncertain global cues.

Hybrid schemes also posted healthy inflows, led by Multi Asset Allocation and Balanced Advantage Funds, reflecting a growing preference for diversification and downside protection. Additionally, ETFs and Gold ETFs witnessed robust inflows, pointing to tactical allocation and hedging strategies by investors.

Overall, the data highlights a maturing investor base—using debt funds tactically for liquidity while staying structurally invested in equities and diversified products for long-term wealth creation. This balance underscores the increasing sophistication of Indian mutual fund investors.

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