by Ms. Aparna Shanker, CIO Equity, The Wealth Company Mutual fund
Net Equity inflows for Mutual Funds for the month of Sep’25 stood at Rs30,405cr vs Rs33,417cr MoM, down 9%. This decline may seem troubling, but this must be seen in the context of other data which can explain this decline.
Firstly, this decline in inflows is not reflected in SIP inflows for Sep’25 (Rs29,361cr Vs Rs28,265cr MoM, up 4% MoM). Secondly, NFOs for Jul’25 raised Rs30,416cr¸effectively pulling forward demand from equity inflows. Lastly, IPOs raised a total of Rs75,384cr from Jan-Sep’25 with most of the raise happening in 2Q FY26 (Rs45,551cr). Thus, we don’t see this a worrying trend, given the higher absorption by IPOs and NFOs but distribution of investments across different segments like SIP, IPOs, NFOs.