India Strategy : India MF Monthly Flow Tracker - Oct 2025 by JM Financial Services Ltd
In Oct’25, equity mutual funds (ex-arbitrage) saw inflows of INR 322bn (USD 3.6bn), 22% lower MoM. This follows a 3% MoM fall in inflows in Sep’25. SIP inflows in Oct’25 increased over Sep’25 to INR 295bn (USD 3.3bn), taking total SIP AUM to INR 16.3trln (USD 183bn), 4.7% higher MoM. Outstanding SIP accounts in the country increased by 1.5mn MoM, while the number of new SIPs registered (gross) increased by 0.2mn from 5.8mn in Sep’25 to 6.0mn in Oct’25. Further, closure of SIP accounts stood at 4.5mn, taking the ratio of discontinued SIPs as a % of new SIPs to 75%. Vis-à-vis the BSE 200, the top-5 sectors where domestic mutual funds are overweight include: (1) pharmaceuticals & healthcare, (2) e-commerce, (3) capital goods, (4) consumer durables and (5) agrochemicals & petrochemicals. Vis-à-vis the BSE 200, the top-5 sectors where domestic mutual funds are underweight include: (1) private banks, (2) oil & gas, (3) consumer, (4) IT services and (5) metals & mining.
* MF flows decrease 22% MoM following a 3% fall in Sep’25: In Oct’25, equity mutual funds (ex-arbitrage) saw inflows of INR 322bn (USD 3.6bn), 22% lower MoM. This follows a 3% MoM fall in inflows in Sep’25. Arbitrage funds saw inflows of INR 69bn vs. outflows of INR 10bn in Sep’25. Core equity funds saw an inflow of INR 247bn, down 19% MoM. Thematic flows have increased MoM, and stood at INR 14bn vs. INR 12bn in Sep’25. Equity NFOs saw a rise in Oct’25 to INR 42bn vs. INR 10bn in Sep’25.
* SIP inflows and SIP accounts see an increase: SIP inflows in Oct’25 increased over Sep’25 to INR 295bn (USD 3.3bn), taking total SIP AUM to INR 16.3trln (USD 183bn), 4.7% higher MoM (helped by 4.5% positive market movement). Outstanding SIP accounts in the country currently stand at 98.8mn, 1.5mn higher MoM. The number of new SIPs registered (gross) increased by 0.2mn from 5.8mn in Sep’25 to 6.0mn in Oct’25. Further, closure of SIP accounts stood at 4.5mn, taking the ratio of discontinued SIPs as a % of new SIPs to 75%. The number of total contributing SIP accounts in Oct’25 increased to 94.5mn vs. 92.5mn sequentially.
* How MF holdings stack up vs. the BSE 200: Vis-à-vis the BSE 200, the top-5 sectors wherein domestic mutual funds are overweight include: (1) pharmaceuticals & healthcare, (2) ecommerce, (3) capital goods, (4) consumer durables and (5) agrochemicals & petrochemicals. This list is unchanged vs. Sep’25. Besides this, sectors such as building materials, media, sugar and diversified have seen mutual funds taking exposure, although they do not have any weight in the BSE200. Vis-à-vis the BSE 200, the top-5 sectors wherein domestic mutual funds are underweight include: (1) private banks, (2) oil & gas, (3) consumer, (4) IT services and (5) metals & mining. This list is also unchanged vs. Sep’25.
* Indian MF cash levels: Indian MFs cash levels stood at INR 2,091bn, which is 4.7% of total equity AUM. In September, this number was lower at INR 1,991bn, constituting 4.7% of AUM.
* In Oct’25, equity mutual funds (ex-arbitrage) saw inflows of INR 322bn (USD 3.6bn), 22% lower MoM. This follows a 3% MoM fall in inflows in Sep’25. Arbitrage funds saw inflows of INR 69bn vs. outflows of INR 10bn in Sep’25.
* Core equity funds saw an inflow of INR 247bn, down 19% MoM.
* Thematic flows have increased MoM, and stood at INR 14bn vs. INR 12bn in Sep’25.
* In core equity funds, all funds except Thematic and Flexi Cap funds saw a decrease in inflows MoM. Dividend Yield and ELSS funds saw outflows in Oct’25.
* Equity NFOs saw a rise in Oct’25 to INR 42bn vs. INR 10bn in Sep’25.
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