The 8 mutual funds that got richer by over ₹500 crore in just one month

Big inflows reveal the strategies and categories finding favour with equity investors right now.

Imagine eight mutual funds, just ordinary equity funds, all seeing inflows (or net growth in assets under management) of more than ₹500 crore each in a single month—and that too in direct plans only. That’s what happened in August 2025, signalling strong investor confidence. 

 

Value Research has compiled the full list, ranked from the lowest increase to the highest: 

Can you guess which funds made the cut? Source: Value Research

 

What’s going on and what does it mean? 

 

Flexi-Cap Funds are hot right now 

 

Two flexi-cap funds (Parag Parikh and HDFC) alone added nearly ₹5,000 crore together in one month. That’s a big clue: investors like flexibility—being able to allocate across large, mid, or small-cap depending on where value shows up. 

 

 

Value and Small-Cap Still Have Fans

It’s not just growth/flexi funds getting attention. The ICICI Prudential Value Fund and Bandhan Small Cap also made the list, showing that investors are seeking value strategies and willing to bet on smaller companies—even in times when net investments in small cap have softened. 

 

Strong Track Record Matters

Many of the funds on this list aren’t rookies. Nippon India Large Cap, Parag Parikh Flexi Cap, HDFC Flexi Cap—all have long, consistent records over 5- and 10-year periods. It’s one thing for a fund to draw money; it’s another for it to consistently perform. Investors seem to be rewarding that. 

 

AuM Growth ≠ Auto Quality—but It’s a Signal

Big fund size & fast growth can mean different things. Some are due to the markets rising (which lifts the NAV of what's already invested); others are due to fresh money from investors (lumpsums or SIPs). A rising AuM is a strong sign of investor trust and sentiment—especially when many funds are doing it. But size alone doesn't tell you everything.

 

"Most of these funds have stellar long-term track records. Nippon India Large Cap, for example, is the best performer in its category over 10 years and second-best over five years. Parag Parikh Flexi Cap and HDFC Flexi Cap have also consistently ranked near the top over five- and 10-year periods.

 

That said, there are a couple of outliers. ICICI Prudential Value Discovery still sits in the bottom half over 10 years (though it has bounced back strongly, ranking fifth over five years). Kotak Flexicap remains a middle-of-the-pack performer over both five and 10 years despite its AuM growth," said Value Research in a note. 

 

What to do as an investor? 

 

Just because a fund is getting big money doesn’t mean it will outperform in future. Always check long-term returns, consistency, risk, how concentrated or diversified the portfolio is, expense ratio, the fund manager’s history. 

 

Flexi-cap funds give you flexibility to ride different parts of the market. If you’re already heavily in large caps, a small or mid-cap or value fund might bring diversification.

 

When many investors pile into the same funds, valuation might get stretched. Funds with surging AuM may have higher asset dilution, or find it harder to deploy incremental inflows efficiently, especially in less liquid mid/small cap stocks.

 

 Popular funds aren’t always the best in every market cycle. Keep a horizon of 3-5+ years; avoid reacting too much to monthly movements—both AuM or returns. 

If you’d invested in Parag Parikh Flexi Cap or HDFC Flexi Cap earlier, you probably benefited from this influx of trust and capital—but your gains came from them doing well not just in August, but over many years. For someone building a portfolio now, these names might merit attention—but they should be just one part of a diversified plan.

 

AuM growth is like follower count on social media—it signals popularity, but what matters is what content (performance, stability, risk) you get behind it. Use growth as a flag to do more due diligence, not as the final signal, advices Value Research.