IGI Logo

Below the Perspective on Monthly Mutual Fund by Sanjay Agarwal, Senior Director, CareEdge Ratings 

The assets under management of the mutual fund industry grew to Rs.75.61 lakh crore rising by 0.6% on a m-o-m basis buoyed by continued inflows in equity mutual funds coupled with rise in underlying asset prices as well. Equity inflows have been in positive territory for more than four and a half years even on month-on-month basis, given the sustained investor confidence despite various macroeconomic uncertainties. However, the quantum of equity inflows has marginally reduced sequentially for a second month in a row.

Debt mutual funds on the other hand witnessed outflows which is typical quarterly redemption pattern for liquidity management by financial institutions/corporates. During September 2025, debt mutual fund outflows stood at Rs.1.02 lakh crore, of which outflows from liquid funds and overnight funds were nearly Rs.0.80 lakh crore, while Overnight, Dynamic bond, Medium to Long Duration and Long Duration categories received some inflows. Amidst rising gold prices and market volatility, gold ETFs inflows quadrupled to over Rs.8,000 crore sequentially. During September 2025, 9 open-ended NFOs were floated which collectively mobilised Rs.0.02 lakh crore with sectoral/thematic funds accounting for 45% share. All categories witnessed inflows barring ELSS funds and dividend yield fund. Structurally, it is expected that Debt mutual funds would be positive once the tax payout of September stabilised.

Above views are of the author and not of the website kindly read disclaimer