India's mutual fund industry witnessed a sharp recovery in October 2026, recording net inflows of ₹1.74 lakh crore after experiencing withdrawals of ₹1.33 lakh crore in September.
As per a report by Moneycontrol, citing data from the Association of Mutual Funds in India (AMFI), the turnaround was primarily driven by strong investments in debt-oriented schemes, even as equity fund inflows moderated.
The latest figures indicate renewed investor interest across several mutual fund categories, although investment trends remained uneven.
Debt mutual funds attracted net investments of ₹1,13,437.89 crore in October, reversing September's outflows of ₹1,83,155.76 crore.
This represented a month-on-month turnaround of approximately ₹2.97 lakh crore.
Assets under management (AUM) for debt schemes increased to ₹18.81 lakh crore from ₹17.64 lakh crore.
Equity mutual funds continued receiving fresh investments, but net inflows declined 13.9% to ₹32,993.64 crore from ₹38,306.55 crore in September.
Equity fund AUM also slipped to ₹37.15 lakh crore from ₹37.54 lakh crore.
Despite the moderation, equity schemes maintained positive net flows, indicating continued investor participation.
Hybrid mutual funds registered net inflows of ₹3,514.06 crore, compared with withdrawals of ₹456.68 crore in September.
Index funds also recovered, attracting ₹3,090.51 crore after recording outflows of ₹3,614.03 crore in the previous month.
Exchange-traded funds (ETFs) witnessed stronger demand, with inflows rising nearly 31% to ₹20,303.98 crore from ₹15,501.40 crore.
However, gold ETF investments declined approximately 22% to ₹3,474.03 crore, compared with ₹4,450.61 crore in September.
Overseas mutual fund schemes continued experiencing withdrawals, with net outflows widening to ₹370.11 crore from ₹159.18 crore.
Overall, October's data reflected a substantial recovery in industry flows, supported by debt schemes and stronger ETF investments.
However, slower equity inflows and reduced gold ETF collections highlighted differences in investor preferences across asset classes.
