More Stories

Informist, Wednesday, Sept. 10, 2025

MUMBAI – Outflows in open-ended debt funds and fall in inflows into equity schemes led to a sharp fall in net inflows into the mutual fund industry to INR 524.43 billion in August, from INR 1.79 trillion in the previous month, according to data released by the Association of Mutual Funds in India Wednesday. In August last year, mutual fund schemes recorded net inflows worth INR 1.08 trillion. The total assets under management of the industry stood at INR 75.19 trillion as of Aug. 31.

Open-ended debt funds posted net outflows of INR 79.80 billion, compared with inflows of INR 1.07 trillion in July. Among debt-oriented funds, the overnight funds registered the highest inflows in August, worth INR 49.51 billion, while liquid funds posted the highest outflows in the month, aggregating to INR 133.50 billion. Total assets under management of liquid funds at INR 5.32 trillion as of Aug. 31.

Net inflows into open-ended equity schemes also posted a fall from the previous month, with inflows worth INR 334.30 billion in August, compared with inflows worth INR 427.02 billion in July. Data showed inflows in all funds under equity-oriented schemes except for dividend yield fund schemes, which saw net outflow of INR 1.75 billion. Among equity-oriented schemes, flexi cap funds continued to gain traction, with INR 76.79 billion worth of inflows during the month. Mid-cap funds outpaced most others with net inflows worth INR 53.31 billion in August. This was closely followed by small cap funds, which registered INR 49.93 billion worth of inflows. 

Money market funds saw net inflows of INR 22.11 billion in August. The assets under management of debt funds rose to INR 18.71 trillion at the end of August. In terms of hybrid funds, there were inflows of INR 152.94 billion in August, which took the AUM to INR 10.08 trillion at the end of August. Net inflows of 21 gold exchange-traded funds rose to a seven-month high INR 21.90 billion in August from INR 12.56 billion in July, the data showed. The assets under management in gold ETFs rose over 7% on month to INR 724.96 billion as of Aug. 31.

The net inflows in silver exchange-traded funds fell for the second consecutive month to INR 17.59 billion in August from INR 19.04 billion in July, according to the data. The assets under management in silver ETFs, however, rose nearly 15% on month to INR 262.94 billion in August due to positive mark-to-market, said Chalasani. Inflows into other exchange-traded funds rose to INR 72.44 billion in August.  

"There is some amount of volatility around the globe and there is a definite global uncertainty there. So, that's the reason why we are seeing (inflows) growth in respect of these two commodities, gold and silver," Chalasani said. However, he added that it is a wait-and-watch situation for both gold and silver when asked if inflows would continue going ahead. Chalasani also attributed the outflow from debt funds to the uncertainty around US tariffs on Indian goods exports and its implications. 
 

August saw systematic investment plan inflows falling to INR 282.65 billion from INR 284.64 billion in July. The number of folios that matured or were discontinued in August were at 4.12 million.  End

Reported by Kabir Sharma, J. Navya Sruthi, and Srijita Bose

Edited by Akul Nishant Akhoury 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

Informist Media Tel +91 (22) 6985-4000 

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2025. All rights reserved.