Mutual fund inflows surge to ₹1.74 lakh crore in October, reversing September outflows
Synopsis
Key Takeaways
India's mutual fund industry staged a sharp recovery in October 2026, with net inflows surging to ₹1,73,839.91 crore — nearly ₹1.74 lakh crore — reversing the net outflow of ₹1.33 lakh crore recorded in September, according to data released by the Association of Mutual Funds in India (AMFI) on Wednesday, 11 November 2026. The rebound signals renewed investor confidence across equity, ETF, and index fund categories.
Equity Funds Lead the Charge
Among equity-oriented schemes, net inflows stood at ₹32,993.64 crore in October. Large-and-midcap funds emerged as the most preferred category, drawing ₹8,484.23 crore in net investments. Small-cap funds followed with inflows of ₹6,407.50 crore, while flexicap funds attracted ₹4,979.95 crore.
Other equity categories also performed strongly. Midcap funds pulled in ₹4,892.62 crore, multicap funds received ₹2,977.86 crore, contra funds saw inflows of ₹1,694.13 crore, and large-cap funds garnered ₹1,032.39 crore. The breadth of participation — across market capitalisation segments — points to a broad-based recovery rather than concentration in a single theme.
ETFs and Index Funds Attract Robust Flows
Exchange-traded funds (ETFs) recorded net inflows of ₹20,303.98 crore in October. Equity ETFs led the segment with ₹12,973.78 crore, followed by gold ETFs at ₹3,474.03 crore and silver ETFs at ₹3,092.22 crore. Debt ETFs attracted ₹751.11 crore, while other ETFs received ₹10.92 crore.
Index funds also remained in favour, recording net inflows of ₹3,090.51 crore. Of this, equity index funds accounted for ₹1,947.81 crore, debt index funds drew ₹1,134.42 crore, and hybrid index funds received ₹8.27 crore. The continued appetite for passive products underscores a structural shift in Indian retail investing toward low-cost, market-tracking instruments.
Overseas Funds Remain Out of Favour
Not all categories participated in the recovery. Funds investing in overseas markets continued to witness investor withdrawals, reporting a net outflow of ₹370.11 crore during October, according to the AMFI data. This marks a sustained trend of caution toward international exposure, likely reflecting currency risk and global macroeconomic uncertainty.
Industry AUM Hits ₹83.39 Lakh Crore
The mutual fund industry's overall assets under management (AUM) rose to ₹83.39 lakh crore as of 30 October 2026, up from ₹82.64 lakh crore at the end of September. This steady AUM growth, despite recent market volatility, reflects the resilience of systematic investment plan (SIP) flows and institutional participation. Notably, the October rebound — a swing of over ₹3 lakh crore from the previous month's outflow — is one of the sharpest month-on-month reversals the industry has recorded in recent quarters. As the festive season and year-end financial planning cycles converge, the sector's near-term trajectory will depend on sustained domestic market stability and retail investor sentiment.