Equity mutual fund schemes in India recorded a robust net inflow of ₹38,306 crore in September, marking a 31% rise compared to the previous month. This growth occurred despite a challenging market environment characterized by volatility and sustained selling by foreign portfolio investors. Data from the Association of Mutual Funds in India highlights that this is the highest inflow since April.

• ₹38,306 crore net equity inflow in September
• 31% rise compared to the previous month
• ₹32,490 crore record Systematic Investment Plan contributions

Mid-Cap, Small-Cap, and SIP Drivers

Investor preference remained strong for mid-cap and small-cap funds, which together accounted for approximately 44% of the total net equity inflows. Small-cap funds led the category with ₹9,039 crore, followed by mid-cap funds at ₹7,835 crore. Additionally, Systematic Investment Plan contributions reached a record high of ₹32,490 crore, underscoring continued retail investor confidence.

• 44% of total net equity inflows from mid-cap and small-cap funds
• ₹9,039 crore led by small-cap funds
• ₹7,835 crore recorded by mid-cap funds

Debt Outflows and Safe-Haven Shifts

Large-cap funds also saw a positive shift, recording inflows of ₹859 crore. Conversely, the broader mutual fund industry faced a net outflow of ₹1.33 lakh crore, primarily driven by significant withdrawals from debt schemes as institutional investors redeemed capital for tax and compliance requirements. Meanwhile, Gold and Silver ETFs saw increased interest, with Gold ETF inflows rising to ₹4,451 crore, reflecting a defensive shift in capital allocation.

• ₹859 crore inflows in large-cap funds
• ₹1.33 lakh crore net outflow from the broader mutual fund industry
• ₹4,451 crore Gold ETF inflows

SBI Research Proposals and Outlook

Concurrently, SBI Research has proposed reforms regarding the tax structure. The ongoing market conditions continue to shape retail participation and institutional strategy across domestic segments.