India’s Mutual Fund AUM Tops ₹76 Lakh Crore in September
India’s mutual fund AUM rises to ₹76 lakh crore in
September, driven by record inflows in Gold ETFs and sustained equity
fund investments, despite debt fund outflows.
India’s mutual fund sector reported moderate growth in assets under management (AUM) in September, despite facing the largest net outflows of the fiscal year, according to ICRA Analytics. The total AUM rose 0.57% month-on-month, reaching ₹75.61 lakh crore from ₹75.18 lakh crore in August.
Gold ETFs Drive Record Inflows
Gold-backed investments led the growth in September. Gold ETFs attracted a record ₹8,363 crore, marking a 578% increase from the same period last year and the highest monthly inflow ever for the segment.
The AUM of Gold ETFs rose 24% month-on-month to ₹90,136 crore, more than doubling on a yearly basis. Analysts attribute the surge to:
• Rising global and domestic gold prices
• Anticipation of U.S. Federal Reserve rate cuts
• A weaker rupee
• Geopolitical uncertainties
Equity Funds Maintain Strong Momentum
Equity mutual funds continued to see healthy inflows, with net investments of ₹30,422 crore in September. Value, focused, and large & midcap funds led the gains. As a result, equity AUM climbed 1.8% to ₹33.68 lakh crore.
Systematic Investment Plans (SIPs) reached a record ₹29,361 crore, up 4% from August, reflecting:
• Rising retail participation
• Increased financial discipline among investors
• Greater awareness of long-term investment strategies
• Enhanced adoption of digital platforms for mutual fund investments
Debt Funds Face Significant Outflows
Debt-oriented schemes experienced heavy redemptions, totaling ₹1.02 lakh crore. The largest withdrawals came from liquid funds (₹66,042 crore) as corporates and institutions managed quarter-end liquidity requirements and festive spending.
Other short-duration debt categories also saw outflows, though overnight and dynamic bond funds managed modest inflows.
Hybrid and Passive Funds: Mixed Trends
• Hybrid funds recorded subdued inflows of ₹9,397 crore, down 39% from August
• Passive funds, mostly ETFs, attracted ₹19,057 crore in net investments
These patterns indicate a shift toward diversified and low-cost investment options, even as debt funds face temporary pressure.
Resilience in the Mutual Fund Industry
ICRA Analytics noted that despite the outflows from debt funds, the overall AUM growth underscores the mutual fund sector’s resilience. Strong retail participation and increased preference for equity, gold, and passive investments are helping the industry navigate volatility and maintain steady growth.
India’s mutual fund AUM rises to ₹76 lakh crore in September, driven by record inflows in Gold ETFs and sustained equity fund investments, despite debt fund outflows.