Equity MF flows snap 3-month decline, surge 21% to ₹29,911 cr in November

Redemptions ease and SIP strength lifts industry AUM past Rs 80 trillion

Net inflows into equity mutual fund (MF) schemes rose 21 per cent month-on-month (M-o-M) to ₹29,911 crore in November, snapping a three-month declining streak. The improvement was driven largely by easing redemptions, which fell 11 per cent during the month, while gross inflows registered a modest 1.4 per cent uptick.

 

According to MF executives, although recent net inflow figures appear subdued compared to the record ₹42,700 crore mobilised in July 2025, the underlying trend remains strong when adjusted for new fund offering (NFO) collections.

 

“This is a constructive trend, especially because the surge in flows earlier in the year was driven largely by NFO activity and recency bias. With one-year returns across equity categories moderating, inflows now appear more balanced and less sentiment-driven,” said Suranjana Borthakur, head of distribution and strategic alliances, Mirae Asset Investment Managers (India). 

Industry executives said the steady contribution across categories signals improving investor resilience despite market volatility.

 

“The MF industry in November showed a quiet but clear rebound. Gross sales for equity funds rose to ₹64,000 crore, reversing October’s dip. The trend reflects a stabilising risk appetite and stronger, broad-based net inflows across core equity categories,” said Akhil Chaturvedi, executive director and chief business officer at Motilal Oswal Asset Management Company (AMC).

 

Systematic investment plan (SIP) flows continued to underpin equity mobilisation, bringing in ₹29,445 crore — slightly below October’s record ₹29,529 crore.

 

According to the Association of Mutual Funds in India (Amfi), the marginal dip was because month-end SIP instalments fell on a weekend.

 

Flexicap funds retained their spot as the most-preferred active equity category, attracting over ₹8,000 crore, supported by their ability to invest across market capitalisations and their current largecap tilt.

 

Midcap, smallcap, and large and midcap funds also remained strong drawcards, each pulling in ₹4,400–4,500 crore in November. “The flexibility and performance dynamics in the broader market helped sustain interest,” said Ovas Bakshi, head–retail sales, Kotak Mahindra AMC.

 

“Investors continued to favour midcap and smallcap funds, both of which recorded robust inflows supported by strong trailing returns, broad earnings delivery, and the perception of superior long-term compounding potential in these higher-growth segments. Intermittent corrections in these pockets also provided attractive entry points,” added Himanshu Srivastava, principal research, Morningstar Investment Research India.

 

Multi-asset funds and commodity-linked schemes — gold and silver in particular — also saw strong interest, supported by their position at the top of the performance charts. Net inflows into multi-asset funds stood at ₹5,300 crore, the second-highest among all active equity and hybrid categories.

 

Commodity exchange-traded funds, while witnessing a sharp M-o-M moderation, still garnered ₹5,896 crore in November compared to ₹11,156 crore in October, outpacing most hybrid and debt categories.

 

The broad-based inflows lifted the MF industry’s assets under management (AUM) above the ₹80 trillion (almost $9 billion) milestone for the first time. “AUM crossed the ₹80 trillion mark in November, reflecting steady investor confidence. SIP assets rose to ₹16.53 trillion, now contributing over one-fifth of the industry’s total AUM, indicating that investors remain committed to disciplined, long-term investing," said Venkat Chalasani, chief executive, Amfi.

 

In contrast, debt-oriented schemes recorded net outflows of ₹25,693 crore. The withdrawals were concentrated in the most liquidity-sensitive categories — overnight and liquid funds — as institutional treasuries pulled out surplus funds to meet mid-quarter payment obligations amid a tightening liquidity environment.

 

“The pressure on short-term categories was expected,” said Nehal Meshram, senior analyst-manager research, Morningstar Investment Research India, pointing to the liquidity squeeze that has persisted through the quarter.