Equity mutual fund inflows jump 31% to Rs 38,307 crore in September; debt funds see Rs 1.83 lakh crore outflow

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Equity mutual fund inflows rose sharply in September 2026, even as heavy withdrawals from debt schemes pulled overall mutual fund flows into negative territory.

Equity-oriented schemes attracted Rs 38,306.55 crore in September, up nearly 31 percent from Rs 29,328.62 crore in August, according to the latest data from the Association of Mutual Funds in India (AMFI).

Monthly systematic investment plan (SIP) contributions also reached an all-time high of Rs 32,490 crore, while small-cap funds attracted more than Rs 9,000 crore, the highest among equity fund categories.

However, debt mutual funds recorded net outflows of Rs 1,83,155.76 crore, compared with outflows of Rs 8,127.32 crore in the previous month.

Overall, the mutual fund industry reported net outflows of Rs 1,33,214.25 crore in September, against net inflows of Rs 41,368.05 crore in August.

Equity fund inflows rise by nearly Rs 9,000 crore

Equity mutual funds received Rs 8,977.93 crore more in September than in August, marking a substantial increase in monthly net inflows.

The rise comes after equity funds had already recorded a nearly 19 percent increase in inflows in August.

Small-cap funds led equity inflows with Rs 9,038.57 crore, followed by mid-cap funds at Rs 7,834.84 crore. Together, the two categories attracted Rs 16,873.41 crore, accounting for around 44 percent of overall equity fund inflows.

Flexi-cap funds also saw inflows rise to Rs 6,701.80 crore from Rs 5,059.42 crore in August. Large-cap funds returned to positive territory with inflows of Rs 859.47 crore, after recording outflows in July and August.

Debt funds see sharp rise in withdrawals

Debt mutual funds recorded the biggest movement during September, with net outflows widening to Rs 1.83 lakh crore from Rs 8,127 crore in August.

The difference between the two months was more than Rs 1.75 lakh crore.

September also marks the end of the financial year's second quarter, a period when institutional investors and companies may withdraw money from short-term debt schemes to meet liquidity requirements.

Liquid funds accounted for the largest withdrawals, recording net outflows of Rs 95,743.20 crore, compared with inflows of Rs 19,934.29 crore in August. Money market funds also saw outflows of Rs 50,846.21 crore, reversing the Rs 11,734.71 crore inflows recorded in the previous month.

Together, liquid and money market funds accounted for around Rs 1.47 lakh crore in net outflows, explaining much of the sharp reversal in debt fund flows.

Hybrid funds turn negative; ETF inflows rise

Hybrid mutual funds also saw a reversal in September.

The category recorded net outflows of Rs 456.68 crore, compared with inflows of Rs 10,045.34 crore in August.

Arbitrage funds were a major contributor to the reversal, recording outflows of Rs 3,956.38 crore after receiving Rs 3,789.02 crore in August. Balanced-advantage funds also saw outflows of Rs 912.43 crore, while multi-asset allocation funds continued to attract money, receiving Rs 3,666.98 crore.

Exchange-traded funds (ETFs), meanwhile, attracted Rs 15,501.40 crore, an increase of nearly 53 percent from Rs 10,160.87 crore in August.

Gold ETF inflows jumped around 71 percent to Rs 4,450.61 crore from Rs 2,596.70 crore in August. Silver ETF inflows also rose to Rs 1,974.32 crore, while equity ETFs attracted Rs 9,959.96 crore.

Index funds moved in the opposite direction, recording net outflows of Rs 3,614.03 crore after receiving Rs 787.49 crore in August.

Overseas funds also continued to see withdrawals, with net outflows widening to Rs 159.18 crore from Rs 72.19 crore.

Life cycle funds received Rs 143.75 crore, while solution-oriented schemes attracted Rs 373.90 crore during September.

The September data highlights a sharp contrast across mutual fund categories: equity funds attracted significantly more money, ETFs continued to see positive flows, while debt and hybrid schemes recorded withdrawals.

SIP contributions hit all-time high

Monthly SIP contributions rose to a record Rs 32,490 crore in September, up Rs 193 crore from Rs 32,297 crore in August, an increase of around 0.6 percent. SIP assets under management (AUM) stood at Rs 17.86 lakh crore in September 2026.

However, SIP account activity presented a different picture. Around 63 lakh new SIPs were registered during September, while 73 lakh SIPs matured or were discontinued. This means discontinuations and maturities exceeded new registrations by around 10 lakh during the month.

The reported number of SIP accounts stood at 10.06 crore in September, compared with an opening balance of 10.75 crore.

Equity and debt fund assets decline

Despite higher equity inflows, equity mutual fund assets under management (AUM) declined to Rs 37.54 lakh crore in September from Rs 39.21 lakh crore in August, a fall of around 4.3 percent.

Debt fund AUM also declined to Rs 17.64 lakh crore from Rs 19.33 lakh crore, a fall of approximately 8.8 percent.

Unlike net inflows, AUM reflects both money entering or leaving mutual funds and changes in the market value of their underlying investments.