Summary of this article
Mutual fund AUM rises 5.6 per cent to Rs 79.9 lakh crore in October 2025.
Net inflows touch Rs 7.6 lakh crore in FY26 till October, shows SEBI data.
Debt, equity and hybrid schemes see strong inflows; MFs buy equities, sell debt.
Mutual funds in India continued their steady growth in October 2025, with net assets under management (AUM) rising 5.6 per cent month-on-month to reach Rs 79.9 lakh crore, according to data released by the Securities Exchange Board of India (Sebi) in its November 2025 bulletin. The growth was supported by a combination of fresh inflows and a broadly positive market trend, reflecting both retail and institutional investor confidence in the country’s mutual fund industry.
During the current financial year so far, until October 2025, mutual funds saw a total inflow of Rs 89.2 lakh crore, while redemptions and repurchases stood at Rs 81.6 lakh crore, resulting in a net inflow of Rs 7.6 lakh crore. The data shows that the pace of inflows by investors was higher than withdrawals, reflecting investors’ confidence despite volatility in the stock market.
The number of mutual fund schemes also saw a modest rise, increasing from 1,849 at the end of September to 1,865 by October, according to Sebi data. At the same time, the total number of folios went up from 25.2 crore to 25.6 crore, signaling growing participation by individual investors and a gradual expansion of the investor base across India.
Income and debt-oriented schemes were the primary beneficiaries of investor interest in October, with net inflows of Rs 1,59,899 crore. The strong inflows in October were mainly driven by institutional investors putting back surplus liquidity after large withdrawals in September for advance tax payments and quarterly balance sheet adjustments. Equity and growth-oriented schemes also saw fresh money, with net inflows of Rs 24,672 crore. Other schemes, including index funds, exchange-traded funds (ETFs), and Fund of Funds (FoFs), attracted Rs 16,668 crore, while hybrid schemes saw Rs 14,156 crore. Solution-oriented schemes had smaller inflows of Rs 261 crore.
Mutual funds showed strong interest in the stock markets. They remained net buyers of equities, investing Rs 23,609 crore during October 2025. At the same time, mutual funds continued to remain net sellers of debt securities for the 18th month in a row. Mutual funds offloaded net Rs 6,393 crore during October, reflecting a cautious approach to fixed-income investments.
On the portfolio management side (PMS), total assets stood at Rs 40.3 lakh crore in September 2025. The above chart highlights steady growth in PMS and the role of institutional and high-net-worth investors in driving money beyond regular mutual funds.
Overall, Sebi’s data shows that India’s mutual fund industry is on a solid growth path, with rising inflows across schemes, growing AUM, and more investors joining in, while fund managers balance equity and debt markets carefully.
