Equity Mutual Fund Inflows Dip in August 2025 – What the Numbers Say

Equity mutual funds saw a noticeable slowdown in August 2025. According to AMFI data, inflows into equity funds dropped to ₹33,430 crore, a sharp fall from ₹42,702 crore in July. While money is still coming into equity schemes, the pace has clearly moderated.

How Large-Cap, Mid-Cap, and Small-Cap Funds Performed

Looking at individual categories, investor behaviour tells an interesting story:

• Large-cap funds – Inflows improved to ₹2,835 crore in August, up from ₹2,125 crore in July. While positive, this number is still small compared to other segments.
• Mid-cap funds – Investors remained confident here, with inflows rising to ₹5,331 crore versus ₹5,182 crore in July.
• Small-cap funds – Flows slowed to ₹4,993 crore, down from ₹6,484 crore in July, but the category continues to attract significant interest from retail investors.
• Flexi-cap funds – These topped the equity charts, pulling in ₹7,679 crore, slightly higher than July’s ₹7,654 crore.

Large-cap funds are making a comeback, but most investors still prefer mid- and small-cap funds for higher growth potential.

What Happened in Other Fund Categories?

• Debt mutual funds turned negative in August, recording an outflow of ₹7,979 crore, compared to a huge inflow of ₹1.06 lakh crore in July.
• Multi-asset allocation funds also saw reduced demand, with inflows dropping to ₹3,527 crore from ₹6,197 crore.
• Arbitrage funds witnessed stable but slightly lower inflows at ₹6,666 crore, down from ₹7,295 crore in July.

SIPs Continue to Hold Steady

Systematic Investment Plans (SIPs) remain a strong backbone for the mutual fund industry.

• SIP AUM in August stood at ₹15.18 lakh crore, accounting for approximately 20% of total mutual fund assets.
• SIP contributions were ₹28,265 crore, only slightly lower than July’s ₹28,464 crore, showing that investors are continuing their disciplined investing approach.

New Fund Offers (NFOs)

August saw 23 new fund launches, raising ₹2,859 crore. These included:

• 2 thematic funds
• 11 index funds
• 6 exchange-traded funds (ETFs)

This shows AMCs are actively expanding options for investors, even as inflows slow.

Conclusion

While overall equity inflows slowed in August, investor interest remains healthy in mid-cap, small-cap, and flexi-cap categories. Debt funds, on the other hand, saw outflows after strong inflows in July. SIPs continue to provide stability, proving that retail investors are sticking to their long-term investment discipline.

Bottom line: The mutual fund industry remains on a steady growth path, even though the pace of inflows has cooled in August.

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