Equity Inflows Decline, Gold ETF Investments Surge Nearly 282% in September: AMFI Data

The mutual fund industry displayed a mixed trend in September 2025, with equity inflows declining for the second consecutive month while gold exchange-traded funds (ETFs) saw a sharp surge in investor interest, according to data released by the Association of Mutual Funds in India (AMFI) on October 10.

Equity Inflows Ease for the Second Month

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In September, net inflows into equities mutual funds decreased 8.9% to ₹30,421.69 crore from ₹33,430.37 crore in August. After an 81% increase in inflows in July, there was a 21.7% drop in August. September saw positive equities inflows for the 55th consecutive month, notwithstanding the decrease, indicating ongoing investor confidence in market assets.

Among equity categories, flexi-cap funds contributed the most with ₹7,029 crore, followed by mid-cap funds at ₹5,085 crore and small-cap funds at ₹4,363 crore. Inflows into large-cap schemes dropped 18.19% to ₹2,319.04 crore in September, compared with ₹2,834.88 crore in August. Equity Linked Saving Schemes (ELSS) reported an outflow of ₹307.92 crore after modest inflows of ₹59.15 crore in the previous month. Sectoral and thematic funds also saw reduced interest, falling to ₹1,220.89 crore from ₹3,893.16 crore in August and ₹9,426.03 crore in July.

Debt and Hybrid Schemes Face Pressure

Debt mutual funds had significant redemptions, with a ₹1.02 lakh crore outflow in September as opposed to ₹7,980 crore in August. When compared to the net inflow of ₹1.06 lakh crore in July, the difference is striking. A downturn was also observed in hybrid funds, as net inflows practically halved from ₹20,879.47 crore in July to ₹9,397.22 crore in August from ₹15,293.70 crore.

Gold ETFs Shine Bright Amid Market Uncertainty

Amid fluctuating market conditions, gold ETFs emerged as the standout performer. Net inflows into these schemes surged 281.9% to ₹8,363.13 crore in September from ₹2,189.51 crore in August, despite elevated gold prices. The jump highlights investors’ growing preference for safe-haven assets and diversification. Inflows into other ETFs also rose to ₹8,150.79 crore from ₹7,244.11 crore a month earlier, underscoring the increasing popularity of passive investment products.

Overall Industry Trends Remain Stable

The mutual fund industry’s total assets under management (AUM) grew marginally to ₹75.61 lakh crore in September from ₹75.18 lakh crore in August. However, the industry witnessed a net outflow of ₹43,146 crore during the month, reversing the ₹52,443 crore inflow recorded in August.

Conclusion

Investor sentiment appears to be changing, according to the September AMFI statistics. Although the rate of equity inflows has slowed, they are still positive, indicating cautious optimism in the face of market turbulence. A larger trend towards diversification and risk management is seen in the steady increase in gold ETF investments and ETF participation. The industry's increasing AUM indicates that investors continue to have faith in mutual funds as a long-term wealth generation channel, notwithstanding the overall outflow.