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More SIPs were discontinued or completed than newly registered, small- and mid-cap funds lost momentum, and gold ETF inflows slowed in October. Yet, India's mutual fund industry continued attracting fresh money, added nearly 16 lakh folios and saw its assets climb to Rs 83.39 lakh crore.
The latest Association of Mutual Funds in India (AMFI) data presents a mixed picture. Monthly SIP contributions slipped to Rs 32,160 crore from September's record Rs 32,490 crore, while equity mutual funds attracted Rs 32,994 crore, down nearly 14 percent from the previous month.
Here are six key takeaways from October's mutual fund data.
1. SIP stoppage ratio crosses 115%, but contributions remain strong
Also read: SIP stoppage ratio surges to 116% in October, reversing five-month decline
This means more SIPs stopped or matured than were newly registered during the month. However, the ratio does not necessarily indicate that investors withdrew their existing mutual fund investments.
Monthly SIP contributions declined around 1 percent, but remained above Rs 32,000 crore for the third consecutive month.
Nearly 10 crore SIP accounts contributed in October, compared with approximately 9.45 crore a year earlier. SIP assets stood at Rs 17.68 lakh crore, accounting for 21.2 percent of industry AUM.
Venkat Chalasani, Chief Executive, AMFI, said, "Investor participation remained resilient, with nearly 10 crore SIP accounts contributing ₹32,160 crore in October, an 8.9% increase year-on-year. This marked the third consecutive month of SIP contributions exceeding ₹32,000 crore."
2. Industry AUM rises to Rs 83.39 lakh crore
The mutual fund industry's assets under management (AUM) increased to Rs 83.39 lakh crore in October from Rs 82.64 lakh crore in September, a rise of 0.9 percent.
The industry added 15.80 lakh net folios, taking the total to 28.78 crore.
Equity mutual funds recorded their 68th consecutive month of positive net inflows, a streak continuing since March 2021.
However, equity fund AUM declined to Rs 37.15 lakh crore from Rs 37.54 lakh crore in September, despite positive inflows.
3. Large- and mid-cap funds overtake small-caps
Large- and mid-cap funds emerged as October's biggest equity category, attracting Rs 8,484 crore, nearly double September's Rs 4,271 crore.
Small-cap inflows declined 29 percent to Rs 6,408 crore, while mid-cap inflows fell nearly 38 percent to Rs 4,893 crore. Large-cap funds, meanwhile, recorded a 20 percent increase.
Himanshu Srivastava, Principal, Manager Research, Morningstar Investment Research India, said the changing composition of inflows could indicate a gradual shift towards more balanced equity exposure. However, he cautioned against interpreting one month's data as a sustained change in investor preferences.
Also read: Small-caps lose top spot as large- and mid-cap mutual fund inflows jump 99% in October
4. Gold ETF inflows slow, silver gains momentum
Gold ETFs attracted Rs 3,474 crore in October, down 22 percent from September's Rs 4,451 crore.
Silver ETFs moved in the opposite direction, with inflows rising nearly 57 percent to Rs 3,092 crore.
Together, the two precious metal ETF categories attracted Rs 6,566 crore.
Also read: Gold ETF inflows beat full-year 2025 total in just 10 months, cross Rs 49,000 crore
Equity ETF inflows also increased to Rs 12,974 crore from Rs 9,960 crore in September.
5. Debt funds see sharp turnaround
Debt mutual funds recorded net inflows of Rs 1.13 lakh crore in October, reversing September's Rs 1.83 lakh crore outflows.
Liquid funds attracted Rs 70,534 crore, while overnight funds received Rs 54,893 crore.
Nehal Meshram, Senior Analyst, Morningstar Investment Research India, attributed the strong inflows primarily to the normalisation of corporate and institutional liquidity following quarter-end adjustments, rather than a broad change in fixed-income sentiment.
Also read: Parag Parikh Flexi Cap's cash holdings fall 65% in a year to 8.78%: Where is the money going?
6. Hybrid funds recover; SIFs attract Rs 5,150 crore
Hybrid mutual funds recorded net inflows of Rs 3,514 crore, reversing September's Rs 457 crore outflows.
Arbitrage funds led the recovery with Rs 3,929 crore in inflows, while multi-asset allocation funds attracted Rs 1,515 crore.
Separately, specialised investment funds (SIFs) recorded inflows of Rs 5,150 crore in October, taking their assets to Rs 42,670 crore. Three new SIF strategies were launched during the month, mobilising Rs 679 crore.
What should investors take away?
October's data suggests that mutual fund participation remains resilient, although the pace and composition of investments are changing.
The sharp rise in the SIP stoppage ratio deserves monitoring, while stronger large- and mid-cap inflows indicate that investors may be spreading their equity allocations more widely.
For investors, these monthly trends offer useful context, but investment decisions should continue to depend on financial goals, risk appetite and time horizon rather than short-term fund-flow movements.
Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
