Equity mutual fund inflows dropped 22 per cent to Rs 33,430 crore in August as compared with Rs 42,702 crore in July, according to data released by the Association of Mutual Funds in India (AMFI) on Wednesday, September 10. The inflows declined by almost 13 per cent YoY. It was 38,239 crore in August 2024.
This was the 54th consecutive month of positive equity flows in August 2025, despite the month-over-month decline.
However, the total assets under management (AUM) of the mutual fund sector decreased slightly to Rs 75.18 crore from Rs 74.41 lakh crore in June and Rs 75.35 lakh crore in July.
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Flexicap funds saw the largest influx of Rs 7,679 crore among the 11 subcategories during the specified period.
Also Read- Amfi Data: Equity mutual fund inflows surge 81% in July after months of caution
Sectoral and thematic mutual funds
According to the AMFI data, sectoral and thematic mutual funds received a total inflow of Rs 3,893 crore.
ELSS and dividend yield funds
After four consecutive months of outflows, ELSS, or tax-savings funds, had an inflow of Rs 59.15 crore in August, putting them back on the upward track. In August, there was a Rs 174 crore withdrawal from the dividend yield fund.
Also Read: AMFI data shows equity mutual fund inflows jump 24% to Rs 23,587 crore in June
Largecap, Midcap and Smallcap funds
The net inflow in the large cap, mid-cap and small cap funds in July were Rs 2,125.09 crore, Rs 5,182.49 crore, and Rs 6,484.43 crore, respectively.
Gold ETFs
Gold ETFs saw a sharp jump in traction from around Rs 1,200 crore last month to nearly Rs 7,200 crore in the month.
What industry experts say
Commenting on the AMFI data, Akhil Chaturvedi, executive director and chief business officer, Motilal Oswal Asset Management Company, said, “The lower impact of new flow, viz, previous month roughly Rs 9,000 crore, is to the extent of NFOs which were higher in July than August. Rest, the flow momentum is steady and healthy. Given past trends, I was hoping for a higher SIP number, which is now flat around ₹27,000 Cr. Broadly, Indian investors continue to add equities to their allocation despite global headwinds and FII selling, and this is very positive for the markets.”
“The development was driven by both investors booking profits and fresh allocations from those fearing they might miss out,” said Suranjana Borthakhur, head of distribution and strategic alliances, Mirae Asset Investment Managers (India).
“From Rs 42,702 crore of net flow on July 25 to Rs 33,430 crore on August 25, the trend has slowed. I’m surprised by this. Even so, the industry’s average net flows over the previous year, from August 2024 to August 2025, were just Rs 33,000 crore,” he added.
“The overall market appears to be recovering and has rallied by 2-3 per cent over the last 30 days. Despite this, we have seen a slowdown in the Q-o-Q flows for mutual fund schemes,” said Viraj Gandhi, CEO of Samco Mutual Fund, on AMFI data.
Aakanksha Shukla, AVP- wealth management, Master Capital Services, commented, “August witnessed heightened global and domestic market volatility, which significantly influenced investor sentiment. Actively managed equity mutual funds saw inflows of Rs 33,430.37 crore in August, marking a 22 per cent decline from the Rs 42,702.35 crore recorded in July. Investors turned cautious, opting to wait and watch rather than invest aggressively, thereby impacting mutual fund inflows.”
