India Equity Mutual Fund Inflows Fall 14% to Rs 32,994 Crore
India’s mutual fund industry recorded net inflows of Rs 1.74 lakh crore in October 2026, reversing September’s outflows. Equity mutual fund inflows fell nearly 14% to Rs 32,994 crore, while debt schemes drew Rs 1.13 lakh crore, led by liquid funds.
India’s equity mutual fund inflows fell nearly 14% to Rs 32,994 crore in October 2026, while the wider mutual fund industry recorded net inflows of Rs 1.74 lakh crore, data released by the Association of Mutual Funds in India showed.
The industry’s October inflows reversed Rs 1.33 lakh crore in net outflows in September. Debt funds led the recovery, attracting Rs 1.13 lakh crore after withdrawals of Rs 1.83 lakh crore the previous month.
Equity funds still received more money than they lost. Their net inflows eased from Rs 38,307 crore in September.
Equity assets decline despite fresh inflows
Equity fund assets under management, or the market value of investments held by the funds, slipped to Rs 37.15 lakh crore in October from Rs 37.54 lakh crore in September. The category’s assets fell by about Rs 39,724 crore, or 1.1%, despite positive net inflows.
Venkat Chalasani, chief executive of the Association of Mutual Funds in India, attributed the fall in equity assets to negative mark-to-market movements. That means the market value of investments held by equity schemes declined during the month.
Large- and mid-cap funds led equity categories, taking in Rs 8,484.23 crore in October, nearly double September’s Rs 4,271.22 crore.
Small-cap funds attracted Rs 6,407.50 crore, down from Rs 9,038.57 crore. Mid-cap inflows fell to Rs 4,892.62 crore from Rs 7,834.84 crore.
Flexi-cap funds received Rs 4,979.95 crore, compared with Rs 6,701.80 crore in September. Large-cap inflows rose to Rs 1,032.39 crore from Rs 859.47 crore.
Contra funds also returned to positive territory, with Rs 1,694.13 crore in inflows after recording Rs 97.88 crore in outflows in September.
Debt funds reverse September withdrawals
Debt mutual funds recorded net inflows of Rs 1,13,437.89 crore in October, compared with net outflows of Rs 1,83,155.76 crore in September. The month-to-month swing was nearly Rs 2.97 lakh crore.
Debt fund assets rose to Rs 18.81 lakh crore from Rs 17.64 lakh crore. Liquid funds drew Rs 70,533.75 crore after outflows of Rs 95,743.20 crore in September.
Overnight funds received Rs 54,893.05 crore, reversing outflows of Rs 7,281.20 crore. Together, liquid and overnight funds brought in about Rs 1.25 lakh crore, more than the debt category’s total net inflows as some other debt schemes continued to see withdrawals.
Nitin Agrawal, chief executive of Mutual Funds at InCred Money, said, “October is a month of recalibration. Equity flows remain structurally healthy at Rs 32,994 crore.”
Santosh Joseph, chief executive of Germinate Investor Services, said, “The resilience of these flows demonstrates the conviction of retail investors to stay invested despite short-term market uncertainties.”
