Equity mutual fund schemes in India recorded a net inflow of ₹38,306 crore in September, marking a 31% increase from August's ₹29,329 crore, according to data from the Association of Mutual Funds in India (AMFI). This inflow is the highest since April, when equity schemes attracted ₹38,440 crore. Monthly contributions through systematic investment plans (SIPs) also reached a record high of ₹32,490 crore in September.
The rise in inflows was driven primarily by small-cap and mid-cap funds, despite ongoing stock market volatility and continued selling by foreign portfolio investors (FPIs). Nitin Agrawal, CEO of Mutual Funds at InCred Money, noted that market dips were seen as opportunities, which encouraged increased investment activity. Himanshu Srivastava, Principal Manager Research at Morningstar Investment Research India, highlighted that the strong inflows occurred even as equity markets corrected and FPIs sold shares during the month.
This surge in equity inflows contrasts with the sustained selling pressure from FPIs, indicating robust domestic investor confidence in Indian equity markets. The inflows into small-cap and mid-cap funds suggest a growing appetite for higher-risk, higher-return segments amid market corrections. The record SIP contributions underscore a trend of disciplined, long-term investing by retail investors, which has become a key driver of mutual fund growth in India.
The data from AMFI shows that gold exchange-traded funds (ETFs) also experienced increased inflows in September, complementing the equity fund trends. The next monthly inflow data release by AMFI will provide further insight into whether this momentum continues amid evolving market conditions.