Equity mutual funds attract ₹29,329 crore in August, highest in 4 months

Strong investor interest in mid-cap and small-cap funds lifted equity mutual fund inflows nearly 19 per cent from July, even as overall mutual fund inflows fell sharply

Equity mutual fund schemes attracted Rs 29,329 crore in August, registering their highest net inflow in four months, as investors continued to favour mid- and small-cap funds despite the market volatility.

 

This inflow was nearly 19 per cent higher than the Rs 24,697 crore recorded in July, according to data released by the Association of Mutual Funds in India (AMFI) on Thursday.

 

Retail participation through systematic investment plans (SIPs) also remained strong, with monthly contributions hitting a record Rs 32,297 crore in August, up from Rs 31,961 crore in July.

 

SIP contributions were about 14 per cent higher than the Rs 28,265 crore collected in August 2025. Following the latest contribution, cumulative SIP collections during the first five months of the current financial year stood at around Rs 1.6 lakh crore.

 

 

"Record-high SIP contributions, along with a moderating stoppage ratio, further demonstrate the growing discipline of Indian investors," said Saugata Chatterjee, President and Deputy CEO, Nippon India Mutual Fund.

 

The overall mutual fund industry's net inflows, however, fell sharply to Rs 41,353 crore in August from Rs 2.36 lakh crore in July, largely due to a reversal in flows into debt-oriented schemes.

 

Debt schemes recorded a net outflow of Rs 8,127 crore in August, compared with an inflow of Rs 1.88 lakh crore in July.

 

Despite the moderation in net flows, assets under management (AUM) of the mutual fund industry rose 1.5 per cent to about Rs 87.08 lakh crore at the end of August from Rs 85.76 lakh crore at the end of July.

 

Equity-oriented schemes recorded a net inflow of Rs 29,328.62 crore in August, the highest since April, when they had attracted Rs 38,440 crore.

 

Equity fund inflows stood at Rs 28,973 crore in June and Rs 22,908 crore in May.

 

Among equity categories, small-cap funds continued to attract the highest inflows at Rs 7,973 crore in August, followed by mid-cap funds at Rs 6,989 crore and flexi-cap funds at Rs 5,059 crore. In contrast, large-cap funds witnessed a net outflow of Rs 1,147 crore during the month.

 

The latest inflow data indicates investors' appetite for mid-cap and small-cap funds remains strong. Together, the two categories attracted nearly Rs 15,000 crore.

 

"Since the market bottomed in March, mid- and small-caps have led the rally, while large caps have remained laggards. Investors have clearly participated in this trend, with flows into mid- and small-cap funds remaining strong over the past two to three months," Santosh Joseph, CEO, Germinate Investor Services, said.

 

Gaurav Goyal, Chief Business Officer, Canara Robeco Asset Management Company Ltd, said strong equity inflows and record SIP contributions suggest investors are increasingly staying invested through market cycles and focusing on long-term wealth creation.

 

A total of 26 schemes were launched in the month of August, raising a total of Rs 7,110 crore, Venkat Chalasani, Chief Executive at AMFI, said.

 

On the debt side, funds witnessed net outflows of Rs 8,127 crore in August, reflecting short-term liquidity requirements and portfolio rebalancing, said Rohit Sarin, Co-Founder, Client Associates.

 

Within debt schemes, overnight funds witnessed the highest net outflow of Rs 30,654 crore, followed by short-term funds at Rs 4,259 crore and corporate bond funds at Rs 3,190 crore.

 

Gold exchange-traded funds (ETFs) also continued to attract investor interest, recording net inflows of Rs 2,597 crore in August, up sharply from Rs 1,559 crore in July. Silver ETFs, meanwhile, saw a net inflow of Rs 1,271 crore during the month.