MF Meter:Monthly Update on India`s Asset Management Industry By JM Financial Services Ltd
Equity mutual fund inflows (including hybrid, ex-arbitrage) stood at INR 322bn in Oct’25, down 22% MoM and -38% YoY. Arbitrage schemes recorded inflows of INR 69bn, reversing from INR 10bn outflows in September. SIP inflows remained resilient at INR 295bn (+1% MoM, +17% YoY). NFO inflows were strong at INR 42bn, from INR 10bn in September. Excluding NFOs, inflows were weak MoM at INR 280bn.
Strong NFO inflows in October were led by Jio Blackrock Flexi Cap, The Wealth Company schemes and Consumption Fund NFOs from Invesco and Motilal Oswal. NFO pipeline for November is weaker, with Kotak Rural Opportunities Fund, LIC MF Consumption Fund and Helios Small Cap Fund
Gross equity MF sales contracted 6% to INR 809bn from INR 863bn in September. while redemptions increased 8% MoM to INR 487bn (perhaps led by strong markets seeing profit booking),
Segmentally, 12% MoM growth in thematic fund inflows, which increased to INR 14bn from INR 12bn. Small-cap inflows contracted to INR 35bn (-20% MoM), and mid-cap inflows fell to INR 38bn from INR 51bn (-25% MoM)
Equity AUM (incl. arbitrage) grew 4.2% MoM to INR 46.5trln (against INR 44.6trln in September), with 3.3% coming from appreciation and ~0.9% net inflows.
Debt MFs saw inflows of INR 285bn vs outflows of INR 226bn MoM while Liquid schemes saw inflows of INR 1,313bn vs outflows of INR 797bn in September and Lastly, SIP inflows of INR 295bn, +1% MoM, +17% YoY
Among AMCs, we favour NAM, which has consistently gained equity AUM market share over the years and trades at inexpensive valuations of 29x FY27e EPS.
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