Mutual fund assets top ₹80 lakh crore as equity inflows jump 21% in November

The mutual fund industry crossed the ₹80 lakh crore mark in November, reflecting steady investor confidence. SIP assets increased to ₹16.53 lakh crore, now accounting for over one-fifth of the industry’s total AUM, indicating that investors continue to stay committed to disciplined, long-term investing.

Equity-oriented mutual funds registered a strong net inflow of ₹29,911 crore in November 2025, up from ₹24,690 crore in October, reflecting sustained investor confidence amid a supportive macro environment, resilient corporate earnings, and a clearer outlook on the global interest rate trajectory. Importantly, this also reversed a four-month declining trend in net inflows into the equity-oriented category. Strong domestic economic momentum, a healthy and stable SIP book, and broad-based gains across the equity markets further strengthened retail investor sentiment.

Venkat Chalasani, Chief Executive, AMFI, says, “Equity-oriented schemes continued to drive growth, supported by sustained inflows. Hybrid and passive funds also saw healthy traction, with multi-asset and arbitrage funds together accounting for over 70% of hybrid category flows.”

SIFs experienced a 45% month-on-month increase in assets, indicating a growing interest in newer investment avenues among mass-affluent investors.

“As the industry expands, AMFI remains committed to strengthening investor awareness and ensuring a transparent, diversified, and accessible investment ecosystem,” says Chalasani.

Category-wise flows show a continued shift toward growth-oriented and diversified mandates, with schemes that provide flexibility across market capitalisations—such as Multicap, Large & Midcap, and Flexicap funds—attracting significant inflows as investors seek exposure to various market segments.

Himanshu Srivastava, Principal Research at Morningstar Investment Research India, says, "At the same time, investors continued to favour mid-cap and small-cap 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 areas also provided attractive entry points. That said, investors should ideally approach these categories with a long-term perspective, rather than basing allocations solely on short-term performance trends."

Flexi-cap funds remained the biggest beneficiaries of flows—they continued to attract the highest inflows, thanks to their versatile mandate and the ease of dynamic market-cap allocation, although November saw a slight dip compared to October.

Debt funds experienced a sharp reversal in November 2025, recording net outflows of ₹25,693 crore, after seeing robust inflows of ₹1.6 lakh crore in October. Nehal Meshram, Senior Analyst at Morningstar Investment Research India, said, "The decline was primarily driven by large withdrawals from the two most liquidity-sensitive categories—overnight and liquid funds—as institutional investors withdrew surplus balances ahead of mid-quarter payment obligations and amid tightening system liquidity."

"Overnight funds saw heavy outflows of ₹37,624 crore, while liquid funds registered redemptions of ₹14,051 crore. The pullback reflected a mix of month-end treasury adjustments, higher call money rates, and advance-tax related withdrawals by corporates and institutions, effectively reversing the temporary surge in inflows observed last month," added Meshram.

Despite weaknesses in the broader liquidity segment, flows into other short-term, accrual-focused categories remained relatively steady. Ultra-short duration funds collected ₹8,361 crore, and low-duration funds saw inflows of ₹4,981 crore, supported by attractive short-term yields and reduced volatility. "Money market funds also posted modest inflows of ₹11,104 crore, indicating continued demand for high-quality, short-maturity instruments despite the overall decline in debt fund flows," said Meshram.