Mutual Fund Update: Mutual funds continue to grow in popularity in India, and October 2025 proved to be a landmark month for the industry. According to the latest data from the Association of Mutual Funds in India (AMFI), total assets under management (AUM) reached ₹79.87 lakh crore. This is an all-time high and represents an increase of ₹4.26 lakh crore compared to the previous month. Growing awareness among Indian investors and confidence in the market have provided a strong foundation for this surge.
Strong Inflows into Equity Funds
Equity mutual funds recorded a net inflow of ₹24,690 crore in October 2025, marking the ninth consecutive month of increased inflows into equity funds. Despite global economic instability and market turmoil, Indian investors’ confidence in equity investments remains strong. This indicates that investors are now adopting a long-term view for returns.
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Trends Shift in Debt and Liquid Funds
While debt funds saw significant outflows in September, investors completely reversed their approach in October. The debt category saw a net inflow of ₹1.59 lakh crore. Liquid funds, typically used for short-term investments, also saw fresh investments of ₹89,375.12 crore. This clearly indicates that investors are now investing in a balanced manner across different categories in search of stability and safe returns.
Increase in Investor Number
The total number of mutual fund folios increased from 251.9 million to 256.0 million in October, representing 4.1 million new investors joining in just one month. This record increase indicates that mutual fund culture is no longer limited to large cities; it is also gaining traction in smaller cities and towns. Companies, responding to growing investor interest, launched 18 new open-ended schemes this month, raising ₹6,062 crore.
Investments in Gold ETFs Declined
Gold ETFs saw a slight decline in inflows amid heavy investments in equity and debt. In October, investments in gold ETFs amounted to ₹7,743 crore, compared to ₹8,363 crore in September. Experts believe that the strength of the equity market and stable interest rates led investors to prefer equity-based instruments over gold.
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Flexi-Cap Funds Become Investors’ Choice
Flexi-Cap Funds saw the highest popularity in October, with inflows of ₹8,928 crore, an increase of nearly 27 percent compared to the previous month. A key feature of these funds is that they offer investors the flexibility to invest across large, mid, and small caps. This flexibility provides investors with balanced risk and the potential for better returns.
Positive Signs for the Industry
October 2025 data shows that the mutual fund industry is rapidly strengthening in India. Rising AUM, higher inflows, and the addition of new investors indicate that Indian investors are increasingly shifting from traditional savings instruments to market-linked products. Experts believe this strong growth momentum could continue if the country’s economy and stock market remain stable.