India’s mutual fund industry recorded net outflows of ₹1.33 lakh crore in September 2026, reversing the net inflows reported in August. The sharp reversal was primarily driven by heavy withdrawals from debt-oriented mutual fund schemes, even as equity funds attracted fresh investments and monthly SIP contributions reached a record high.
Overall Mutual Fund Outflows Rise
According to data released by the Association of Mutual Funds in India (AMFI), the industry recorded net outflows of approximately ₹1.33 lakh crore in September, compared with net inflows of around ₹41,353 crore in August.
The industry’s assets under management (AUM) declined by about 5% month-on-month, falling from ₹87.08 lakh crore to ₹82.64 lakh crore.
Debt Funds Drive the Decline
Debt mutual funds were the biggest contributor to the overall outflow. The category recorded net withdrawals of approximately ₹1.83 lakh crore in September, compared with outflows of around ₹8,127 crore in August.
Liquid funds saw withdrawals of ₹95,743 crore, while money market funds recorded outflows of ₹50,846 crore. These movements more than offset the positive flows into equity-oriented schemes.
Equity Mutual Funds Attract More Investments
Equity mutual funds continued to attract investor money, recording net inflows of ₹38,307 crore in September, an increase of around 31% from ₹29,329 crore in August.
Small-cap funds led the category with inflows of ₹9,039 crore, followed by mid-cap funds at ₹7,835 crore and flexi-cap funds at ₹6,702 crore. Large-cap funds also returned to positive territory, attracting ₹859 crore after recording outflows in August.
SIP Contributions Reach a Record High
Monthly contributions through systematic investment plans (SIPs) touched a record ₹32,490 crore in September, edging up from ₹32,297 crore in August.
The figures highlight the continued participation of investors making regular investments, despite the wider industry’s negative monthly flows. However, strong SIP contributions do not guarantee returns or eliminate market risk.
Gold and Silver ETFs Gain Investor Interest
Exchange-traded funds (ETFs) also attracted substantial investments. Total ETF inflows rose to approximately ₹15,501 crore in September from ₹10,161 crore in August.
Gold ETFs received ₹4,451 crore, while silver ETFs attracted ₹1,974 crore. Equity ETFs recorded inflows of ₹9,960 crore, reflecting continued interest in both equity and precious-metal investment products.
What the September Data Means for Investors
The latest figures show that mutual fund flows differed significantly across investment categories. Debt funds faced substantial withdrawals, while equity funds and SIPs continued to attract money.
Net outflows from the industry do not necessarily mean that individual investors are abandoning mutual funds. Withdrawals from short term debt schemes can reflect cash-management needs and other timing factors. Investors should assess their financial goals, investment horizon and risk tolerance before making changes to their portfolios.
The September data offers a reminder that overall industry flows can conceal different trends across fund categories, making it important to look beyond a single headline figure.
