MUMBAI, November 11, 2026 (91bps) – Net inflows into equity mutual funds fell 13.9% month-on-month to 329.94 billion rupees in October from 382.94 billion rupees in September, while systematic investment plan (SIP) contributions declined for the first time in six months, according to data released by the Association of Mutual Funds in India.

Monthly SIP contributions dipped around 1% to 321.60 billion rupees from a record 324.90 billion rupees in September. Despite the decline, contributions remained above 320 billion rupees for the third consecutive month and were 8.9% higher than the 295.29 billion rupees recorded in October 2025.

The moderation in equity fund inflows came amid pressure on domestic equities, with foreign institutional investors withdrawing 348.43 billion rupees from Indian stocks during October. Global demand for artificial intelligence-linked stocks, rising US Treasury yields and a weakening rupee weighed on investor sentiment.

Small-cap and mid-cap funds recorded sharp declines in inflows. Small-cap funds attracted 64.08 billion rupees, down 29.1% from 90.39 billion rupees in September, while mid-cap fund inflows fell 37.5% to 48.93 billion rupees from 78.35 billion rupees.

Flexi-cap fund inflows declined to 49.80 billion rupees from 67.02 billion rupees, while multi-cap funds received 29.78 billion rupees, compared with 38.60 billion rupees in September.

In contrast, large and mid-cap funds attracted 84.84 billion rupees, nearly double the 42.71 billion rupees recorded in September, making them the largest contributors to equity scheme inflows.

Large-cap fund inflows also rose to 10.32 billion rupees from 8.59 billion rupees, marking the category's second consecutive month of positive inflows following outflows in July and August.

Contra funds returned to positive territory, recording net inflows of 16.94 billion rupees against outflows of 0.98 billion rupees in September. Value, thematic and sectoral funds, however, recorded lower inflows.

Debt funds reverse outflows

Debt mutual funds recorded net inflows of 1.13 trillion rupees in October, reversing outflows of 1.83 trillion rupees in September.

Liquid funds attracted 705.34 billion rupees, followed by overnight funds at 548.93 billion rupees and money market funds at 15.02 billion rupees.

Corporate bond funds, however, recorded outflows of 31.43 billion rupees, while short-duration funds saw outflows of 20.93 billion rupees and banking and PSU debt funds lost 12.38 billion rupees.

Hybrid funds returned to positive territory, attracting 35.14 billion rupees against outflows of 4.57 billion rupees in September.

Exchange-traded fund inflows rose to 203.04 billion rupees from 155.01 billion rupees in September. Equity ETFs accounted for 129.74 billion rupees, while gold and silver ETFs attracted 34.74 billion rupees and 30.92 billion rupees, respectively.

Overall, the mutual fund industry recorded net inflows of 1.73 trillion rupees in October, reversing outflows of 1.33 trillion rupees in September. Assets under management rose to 83.38 trillion rupees from 82.64 trillion rupees at the end of September.