India’s mutual fund industry saw moderation in assets under management (AUM) in December 2025, even as systematic investment plan (SIP) contributions surged to a record high. The drop in AUM was attributed to debt fund outflows for liquidity management and limited valuation gains in equity markets.

According to data released by the Association of Mutual Funds in India (AMFI), the industry’s net assets under management (AUM) stood at ₹80.23 lakh crore at the end of December, compared with ₹80.80 lakh crore in November. Average AUM (AAUM) for the month stood at ₹81.99 lakh crore.

The data showed that mutual fund folios continued to expand, rising to 26.12 crore in December, with a net addition of 26.40 lakh folios during the month. Retail mutual fund folios - comprising equity, hybrid and solution-oriented schemes - stood at 20.28 crore. Retail AUM for these categories was at ₹47.36 lakh crore during the month under review.

SIP inflows hit fresh record high

SIP contributions emerged as a key support for the mutual fund industry. After stabilizing around ₹29,400-29,500 crore per month, the SIP inflows rose to an all-time high of ₹31,001.67 crore in December, up about 5% from recent monthly averages.

Total SIP assets stood at ₹16.63 lakh crore, accounting for 20.7% of the industry’s overall AUM, while the number of contributing SIP accounts increased to 9.79 crore.

“As of December 2025, the Indian mutual fund industry’s AUM stood at ₹80.23 lakh crore. The moderation was primarily driven by debt fund outflows for liquidity management and limited market-related valuation changes,” said Venkat Chalasani, Chief Executive of AMFI.

He added that on a year-on-year basis, industry AUM grew 19.9%, reflecting wider adoption of mutual funds across investor segments.

Equity inflows drop for 5th straight month

As per the data, equity-oriented schemes recorded their 58th consecutive month of net inflows, a streak that began in March 2021, although the pace of inflows moderated for the fifth straight month.

“For the fifth month in a row, we have seen equity inflows slowing down from its previous 12 months averages. Markets are nervous due to delay in trade deal with US, currency depreciation, FPI outflows and due to volatile valuations of equities,” said Viraj Gandhi, CEO, SAMCO Mutual Fund.

According to Kartik Jain, MD & CEO, Shriram AMC, the industry's net outflows of approximately ₹66,500 crore in December 2025 reflect a seasonal rebalancing rather than a shift in investor sentiment driven by debt funds. “These outflows were concentrated in short-term debt categories—including liquid, money market, and ultra-short duration funds—aligning with typical Quarter end corporate behaviour for meeting advance tax obligations, finalizing balance sheets, and managing liquidity requirements,” he said.

As per the AMFI data, equity gross sales rose about 7% month-on-month to ₹72,808 crore, while hybrid gross sales increased nearly 17% to ₹16,548 crore, indicating continued investor interest in market-linked products. Despite elevated redemptions, equity funds recorded healthy net inflows of around ₹29,500 crore, suggesting profit booking rather than risk aversion. Hybrid funds also remained net positive.

Flexi-cap funds led equity inflows during the month, supported by new fund offers, while multi-asset allocation funds recorded peak gross sales of about ₹9,000 crore, emerging as the strongest performers within the hybrid category. Gold and silver-oriented funds witnessed inflows of over ₹10,000 crore, benefiting from a strong rally in precious metals.

A total of 29 open-ended schemes were launched in December across categories, mobilising ₹5,773 crore. Separately, SIF assets stood at ₹4,892 crore, with inflows of ₹1,933 crore during the month, largely driven by hybrid strategies.

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