Indian mutual fund industry ended Sep 2026 with assets of Rs 82.64 lakh crs compared to Rs 87.07 lakh crs in July 2026.
The Industry witnessed outflows of Rs 1.33 (0.41) lakh crs, with debt schemes facing outflows of Rs 1.83 (0.08) lakh crs and equity schemes showing net positive inflows of Rs 38,307 (29,328) crs. Hybrid schemes saw outflows of Rs – 457 (10,045) crs. Equity schemes saw a decrease in assets to Rs 37.54 (39.21) lakh crs. This was mainly due to decline in the markets across the board. Nifty 500 was down 5.85% (0.05%) and Nifty 50 was down by 6.03% (1.14%) with mid caps down by 7.07% (1.79%) and small caps down by 3.08% (2.62%). One year returns for large caps are negative except for Mid caps and small caps which are positive.
Mutual Fund Industry Overview
Monthly flow and AUM trends:
Equity Mutual Funds :
- Net flows in equity schemes increased by 30% compared to Aug 2026. The increase is mainly due to reduction in redemptions from schemes. The fall in the markets may have made investors postpone their redemptions.
- Net inflows in various categories were as under:
- Sectoral/Thematic Funds: Rs 3,640 (1,713) crs
- Flexi-Cap Funds: Rs 6,702 (5,059) crs
- Small-Cap Funds: Rs 9,039 (7,973) crs
- Mid-Cap Funds: Rs 7,835 (6,989) crs
#EquityFunds #MutualFunds #WealthCreation #LongTermInvestment #EquityMarket #ELSSschemes #Equityschemes
Debt Funds: Outlows after a strong start to the quarter.
Key Trends in Debt Funds:
– Total debt fund AUM declined to Rs 17.64 (19.33) lakh crore mainly due to negative flows due to quarter end as well as advance tax deadlines.
Liquid, ultra short and money market funds saw outflows and so did most other debt fund categories too.
#DebtFunds #InterestRates #BondMarket #FixedIncome #FinancialPlanning
Hybrid Funds:
Arbitrage funds also saw net outflows in September. This may also be because of the tax deadline. The category saw outflows in March 2026 also. Hybrid funds’ assets were at Rs 11.52 (11.85) lakh crs. Net outflows out of hybrid funds stood at Rs 457 (10,045) crs, led by Arbitrage and Equity Savings funds. Multi Asset Allocation funds saw steady inflows at Rs 3,667 crs and the inflows into Aggressive Hybrid Funds have also been steady.
The life cycle funds that were launched last month managed to garner Rs 147 crs this month. Lifecycle funds upto 15 years have been launched. Let’s see who will launch the first 30 years life cycle fund.
#HybridFunds #Diversification #RiskManagement #BalancedInvestment
Passive mutual funds:
AUM of Index funds fell to Rs 3.20 (3.45) lakh crs. Debt index funds again saw net outflows the month. Equity index funds saw net inflows of Rs 2,649 (2,393) crs.
Exchange Traded Funds (ETFs):
Silver inflows were up at Rs 1,974 (1,270) crs. Gold ETFs inflows were at Rs 4,451 (2,596) crs. Gold FoFs have recently announced a suspension in sale of new units and hence this may get impacted in October 2026.
Fund of Funds Schemes (FoFs):
FoFs collected almost Rs 2,362 (2,799) crs of net inflows which was a significant increase over the previous month. The assets managed by these schemes are at Rs 2.25 lakh crs.
Specialised Investment Funds (SIFs):
More than 150,000 accounts have been created in SIFs. Safe to say that there are more than one lakh investors who are dipping their toes in the SIF waters. SIFs are now managing Rs 38,287 (31,175) crs of assets of which 26,413 (21,390) crs are in hybrid strategies. Of the 7,578 (7,700) crs of inflows into SIFs, 377 crs were through NFOs. There is a clear positioning emerging with the SIF categories with certain funds being positioned for debt investors certain for hybrid investors and equity long short funds for equity investors.
Way forward
Markets have corrected sharply. Investors have not seen any returns for the last two years. Having a well allocated portfolio can reduce market volatility. If you are dependent on income from your investments, its better to keep 3-4 years of requirements in debt schemes or instruments. Investment in equities require a 5-7 year horizon. Stick to 4-6 good schemes and stay invested.
About EquiZen
EquiZen, a registered mutual fund, SIF (ARN-272487 – Sanjay Parikh) and PMS distributor (APRN-00158), offers financial solutions with a focus on safety and transparency. We aim to assist you recommending appropriate products based on your time horizon and risk profile. Learn more at www.equizen.in or contact us via +91 9820605203 or sanjay@equizen.in.
