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Below the Views on AMFI Data Dec 2025 by by Mr Ankur Punj MD – Business Head, Equirus Wealth

AMFI’s December 2025 data reflects a noticeable moderation in mutual fund flows as markets approached year-end. This moderation is largely driven by global headwinds and rising geopolitical tensions, prompting investors to take a more cautious stance. The overall industry AUM also saw a marginal dip to Rs.80.23 lakh crore in December compared to Rs.80.80 lakh crore in November.

Within equity, investor preferences remain selective. Flexi-cap funds continued to attract strong inflows of nearly Rs.10,000 crore, followed by mid-cap funds at Rs.4,175 crore and large & mid-cap funds at Rs.4,093 crore. In contrast, small-cap fund inflows declined to Rs.3,834 crore from Rs.4,400 crore in November, reflecting heightened volatility in the small-cap segment.

We are also seeing investors turn selective rather than exit the market completely, with continued interest in certain equity categories. The standout trend in December was the sharp surge in defensive allocations. Gold ETFs saw inflows of Rs.11,647 crore, while hybrid funds attracted Rs.10,756 crore, underlining a clear shift towards diversification and downside protection.At the same time, monthly SIP contributions hit a fresh record of Rs.31,002 crore, crossing the Rs.31,000 crore mark for the first time. What stands out, however, is the resilience of SIP inflows, which continue to hit new highs. This clearly indicates that retail investors remain committed to long-term wealth creation despite short-term market uncertainty. For retail investors, this is a timely reminder to stay disciplined, avoid reacting to short-term volatility and focus on asset allocation. Continuing SIPs, diversifying across asset classes and aligning investments with long-term goals will be far more effective than trying to time markets in an uncertain global environment.

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