Shares of major Indian asset management companies (AMCs) faced selling pressure on Tuesday, November 11, as fresh data revealed a significant slowdown in equity mutual fund investments. Nippon Life India AMC, HDFC AMC, Aditya Birla Sun Life AMC, UTI AMC, and the newly listed Canara Robeco AMC all saw their stock prices decline by up to 3% during the intraday session.
October Inflows Show Sustained Slowdown
This market reaction was triggered by the monthly data released by the Association of Mutual Funds in India (AMFI), which showed that inflows into equity mutual funds dropped by 19% month-on-month in October. The total infusion stood at ₹24,690 crore, down from ₹30,421 crore in September. This marks the third consecutive month of decline since the record-high inflows of ₹42,702 crore witnessed in July.
Category-Wise Breakdown: Winners and Losers
The slowdown was not uniform across all categories. An analysis of the 11 equity fund categories reveals a sharp divergence in investor sentiment.
Value/Contra Funds experienced the most severe contraction. Their inflows plummeted from ₹2,107.93 crore in September to a mere ₹368.39 crore in October, a staggering drop of approximately ₹1,739 crore.
Large-cap funds were also hit hard, with inflows reducing to ₹972 crore from ₹2,319 crore the previous month. Similarly, mid-cap fund inflows fell by 25% to ₹3,807 crore, while small-cap funds lost momentum, declining by 20% or ₹3,476 crore.
However, not all categories suffered. Sectoral/Thematic funds witnessed a slight increase, with inflows rising from ₹1,221 crore to ₹1,366.16 crore.
Standing out against the broader trend, Flexi Cap Funds recorded a strong rise in investor interest. Inflows surged to ₹8,928.71 crore in October from ₹7,029.26 crore in September, making it the category with the highest inflows for the month.
A Shift to Debt and Overall AUM
As money flowed out of certain equity segments, there was a notable rotation into debt funds. After two consecutive months of withdrawals, debt mutual funds witnessed a massive surge in inflows, totaling ₹1.56 lakh crore in October.
Within the 16 debt sub-categories, Liquid Funds led the pack with inflows of ₹89,375 crore, followed by Overnight Funds, which attracted ₹24,050 crore. This shift indicates that investors are seeking the relative safety of less risky assets.
Amid this reversal in debt inflows, the total assets under management (AUM) for the entire Indian mutual fund industry stood at a colossal ₹80 lakh crore in October 2025.
Disclaimer: Investors are advised to consult with certified experts before making any investment decisions.
