Equity mutual fund (MF) inflows fell 22% month on month in August 2025 to ₹33,430 crore compared with ₹42,702 crore in July, but August marked the 54th conservative month of positive inflows, according to data released by the Association of Mutual Finds in India (AMFI) on Wednesday.
August 2024 had witnessed net equity MF inflows of ₹38,239 crore.
Hariprasad K, research analyst and founder of Livelong Wealth, said this was on account of flat Nifty returns, misplaced SIP expectations, and the lure of alternatives like gold and global equities.
“The dip signals a subtle but important shift in investor sentiment,” he pointed out.
“One of the key reasons for the cooling enthusiasm is the market itself. Over the past year, the Nifty 50 has delivered near-zero returns, despite its decade-long track record of compounding at a healthy 12–13% CAGR,” he said.
As per AMFI data, net AUM stood at ₹75,18,702.50 crore for August 2025 as against ₹75,35,970.68 crore in the previous month.
Mutual fund folios were higher at 24,89,09,424 as of August 2025 compared with 24,57,24,339 for July 2025.
Retail MF Folios (Equity + Hybrid + Solution Oriented Schemes) were at 19,64,01,310 for August as against 19,41,95,038 in July 2025.
The SIP AUM was at ₹ 15,18,368 crore for the month of August 2025 and accounted for 20.2% of the total mutual fund industry assets.
SIP contribution for August 2025 stood at ₹28,264.95 crore. A total of 23 schemes were launched in the month of August 2025, all open-ended and across categories, raising a total of ₹2,859 crore, as per AMFI data.
Venkat N Chalasani, Chief Executive, AMFI said, “Equity funds recorded net inflows of ₹33,430 crore, marking the 54th consecutive month of positive flows. Categories such as flexi-cap, mid-cap, and small-cap funds continued to see strong participation, with mid-cap funds registering their highest-ever monthly inflows.”
“SIPs too remained a consistent driver of retail participation, contributing ₹28,265 crore during the month, with SIP AUM now at over ₹15.18 lakh crore and 8.99 crore contributing accounts,” he said.
“These steady flows across equity, hybrid, passive funds and SIPs underscore the continued confidence of investors in mutual funds as a long-term wealth creation avenue,” he added.
Commenting on the AMFI data outcome, Hemen Bhatia, ED and CEO, Angel One Asset Management Company said, “Gold has once again proven its strength as a value asset and a reliable hedge in volatile markets. In August 2025, Gold ETFs witnessed strong inflows of ₹2,189.51 crore, supported by soaring gold prices and sustained central bank buying.”
“These inflows, reflect growing investor preference for gold as a portfolio diversifier. With its low correlation to other asset classes, gold continues to enhance stability and risk-adjusted returns for long-term investors,” he said.
Published – September 10, 2025 09:14 pm IST
