Net inflows into equity mutual funds moderated for the second consecutive month in September, standing at Rs 30,421 crore, data from the Association of Mutual Funds in India (AMFI) showed on Friday.This represents a 9 per cent decline from August’s Rs 33,430 crore and remains well below July’s record Rs 42,703 crore, PTI reported.Despite the slowdown, September marked the 55th consecutive month of net inflows into equity schemes, indicating continued faith in equities as a long-term wealth creation avenue.Nehal Meshram, Senior Analyst – Manager Research at Morningstar Investment Research India, said the moderation “appears cyclical rather than structural,” following two months of exceptionally strong inflows. Ankur Punj, MD and Business Head of Equirus Wealth, attributed the softening to geopolitical uncertainties, while Viraj Gandhi, CEO of Samco Mutual Fund, highlighted a slowdown in thematic fund collections.Systematic Investment Plans (SIPs) remained a steady inflow channel, with contributions rising to Rs 29,361 crore in September from Rs 28,265 crore in August, showing sustained retail participation even amid near-term market swings. “While the pace of inflows softened, the overall trend continues to reflect sustained investor confidence in equities,” Meshram noted.Flexi-cap funds led equity inflows in September with Rs 7,029 crore, marking the third consecutive month of strong interest. Mid-cap and small-cap funds attracted Rs 5,085 crore and Rs 4,363 crore, respectively, though inflows slowed slightly as investors turned cautious after recent rallies. Large-cap funds recorded Rs 2,319 crore in inflows, reflecting a measured stance amid elevated valuations.Precious metals emerged as a preferred hedge, with Gold ETFs seeing record inflows of Rs 8,363 crore in September, up from Rs 2,190 crore in August. This pushed total assets under management in Gold ETFs past the Rs 90,000 crore mark. Silver ETFs also attracted notable inflows, signalling rising investor appetite for metals-based diversification.Kartik Jain, MD and CEO of Shriram AMC, said multi-asset allocation funds recorded nearly Rs 5,000 crore in inflows, largely driven by allocations to gold and silver. Hemen Bhatia, ED and CEO of Angel One Asset Management Company, added, “This momentum is largely driven by gold’s sharp rally, fuelled by rising geopolitical tensions, sustained central bank purchases, and a weakening US dollar.”In contrast, debt funds witnessed significant withdrawals of Rs 1.02 lakh crore in September, sharply reversing August’s Rs 7,980 crore outflow. Large institutional redemptions from liquid and money market funds drove the decline, reflecting quarter-end liquidity adjustments and advance tax-related outflows. Meshram noted that these categories remain sensitive to seasonal liquidity cycles.Overall, the mutual fund industry recorded a net outflow of Rs 43,146 crore in September, following inflows of Rs 52,443 crore in August. Assets under management (AUM) rose modestly to Rs 75.61 lakh crore at the end of September, up from Rs 75.12 lakh crore in August, showing resilience amid market volatility.
Mutual fund trends: Equity inflows moderate in September at Rs 30,421 crore, Gold ETFs attract record interest; Debt funds face withdrawals
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