Mutual Fund Equity Inflows Fall 21% in August, AUM Marginally Declines

Net equity inflows into mutual funds declined by 21% in August 2025, amounting to ₹33,430 crore, according to data released by the Association of Mutual Funds in India (AMFI) on September 10. This marks the 54th consecutive month of positive equity flows, highlighting the sustained investor interest in equity schemes despite a moderation in inflows compared to July, which recorded ₹42,702 crore, and June’s ₹23,587 crore.

AUM Trends and Market Performance

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The overall assets under management (AUM) of the mutual fund industry showed a slight decline, standing at ₹75.18 lakh crore in August from ₹75.35 lakh crore in July and ₹74.41 lakh crore in June. The marginal dip reflects mark-to-market (MTM) corrections in equity valuations rather than reduced investor participation, indicating continued confidence in the long-term growth potential of mutual fund investments.

New Scheme Launches

During August, the mutual fund industry launched 23 new schemes, all open-ended and across various categories. These schemes raised a total of ₹2,859 crore, significantly lower than July’s 30 new schemes, which had collectively garnered ₹30,416 crore. The reduction in fund mobilisation may be attributed to seasonal factors and the relatively smaller size of the schemes launched.

Debt and Hybrid Fund Flows

On the debt side, open-ended funds recorded a net outflow of ₹7,980 crore in August, a sharp moderation from the ₹1,06,801 crore outflow reported in July. Hybrid funds, which invest across both equity and debt, also saw reduced inflows, declining to ₹15,293 crore from ₹20,879 crore in July. The slower flows into debt and hybrid schemes reflect cautious investor sentiment amid prevailing market volatility and interest rate expectations.

Industry Outlook

The mutual fund industry remains resilient despite the decrease in net inflows, thanks to strong investor involvement in stocks and a diverse scheme portfolio. According to analysts, new fund launches across categories and consistent inflows into stocks show that institutional and individual investors are still confident in the mutual fund route to wealth development.

Conclusion

AUM for mutual funds as a whole slightly decreased in August 2025, and net equity inflows moderated. Nonetheless, consistent investor confidence is highlighted by the 54-month run of positive equity flows. Even while inflows into debt and hybrid funds decreased, the industry is nonetheless growing steadily, thanks to participation in the equity market and scheme diversification.