Winning Bizness Desk
Mumbai.In September 2025, investments through Systematic Investment Plans (SIPs) in mutual funds grew by 4 percent. Total SIP contributions rose from 28,265 crore rupees in August to 29,361 crore rupees in September. This marks the first time monthly SIP investments have crossed the 29,000 crore rupee mark. The rise indicates that investors are increasingly preferring small, regular contributions to mutual funds. This data comes from the latest figures released by the Association of Mutual Funds in India (AMFI).
Gold ETFs See Largest Investment Spike
Among various mutual fund schemes, Gold ETFs attracted the highest investments. September witnessed a significant inflow into index funds and ETFs, which together garnered 19,056 crore rupees, up 67 percent from 11,436 crore rupees in August. Out of this, Gold ETFs alone received 8,363 crore rupees. The data shows a growing investor interest in diversified and relatively safer investment options amid market uncertainties.
Equity Fund Investments Show Decline
Equity mutual funds saw a reduction in investments for the second consecutive month. Total inflows into equity funds stood at 30,422 crore rupees in September, down 9 percent from 33,430 crore rupees in August. Midcap funds attracted the largest amount at 5,085 crore rupees, followed by small-cap funds with 4,362 crore rupees. Sectoral and thematic funds received the least attention, with only 1,220 crore rupees invested. ELSS funds and dividend yield funds witnessed net outflows of 307 crore rupees and 167 crore rupees, respectively.
Debt Funds Face Heavy Withdrawals
Debt mutual funds experienced massive redemptions in September. Investors withdrew 1.01 lakh crore rupees, a sharp increase from the 7,979 crore rupees outflow in August. Of the 16 debt fund subcategories, only four saw fresh inflows: overnight funds, medium-to-long duration funds, long duration funds, and dynamic bond funds. Overnight funds received the largest inflow at 4,279 crore rupees, while liquid funds suffered the highest outflow of 66,042 crore rupees.
Hybrid Funds Also Witness Lower Investments
Investments in hybrid mutual funds fell sharply by 39 percent to 9,397 crore rupees in September, compared to 15,293 crore rupees in August. Among six hybrid subcategories, multi-asset allocation funds received the highest inflow of 4,982 crore rupees. However, conservative hybrid funds and arbitrage funds saw significant withdrawals. Overall, open-ended mutual funds recorded net outflows of 42,815 crore rupees, indicating that investors remain cautious in the current market scenario.
Overall AUM Growth Remains Marginal
Despite outflows in some categories, the total assets under management (AUM) of mutual funds increased marginally by 0.57 percent to 75.35 lakh crore rupees in September from 74.93 lakh crore rupees in August. The rise in SIP investments reflects investor confidence in mutual funds for long-term wealth creation. The trend toward gold ETFs and index funds also suggests a preference for safer and diversified investment options.
SIP Confidence Shows Long-Term Trust
The growing SIP contributions indicate that retail investors are maintaining trust in mutual funds despite market volatility. The reduction in equity, debt, and hybrid fund investments highlights a cautious approach, while increased allocations to gold and index funds point toward risk diversification and stability in investment choices.
Pointers in a Nutshell
- SIP investments crossed 29,000 crore rupees for the first time in September 2025
- Gold ETFs attracted highest inflows at 8,363 crore rupees
- Equity fund investments declined by 9 percent compared to August
- Debt funds saw massive redemptions of over 1 lakh crore rupees
- Hybrid fund investments dropped 39 percent from previous month
- Overall mutual fund AUM rose marginally to 75.35 lakh crore rupees
- Rising SIP and ETF investments indicate long-term investor confidence and safety preference
